House Hack #2 - HomePossible, or HomeImpossible?

[Kyle D.]

I've hit a brick wall here! I've also spoken to 2 lenders now who supposedly offer the HomePossible Product, but they don't seem to have the answer themselves. 


Short bit of info on me: I'm coming up on 2 years of ownership in a MFH (3 units, purchased with 3.5% down FHA) in Hudson County NJ.
I'm now shopping for my next live-in MFH in the area. Due to my current home being locked at a low interest rate (2.25%), I don't imagine it would be prudent to refinance into conventional.

This leaves me with a few options to purchase my next MFH with a low(ish) down payment (hopefully 10% or less). One such is the Freddie Mac HomePossible package. In researching, I'm a bit confused by info I'm finding. I understand the package is limited to qualified buyers with income below 80% of the AMI (Area Median Income). This is where I have 2 questions, which I have yet to find a solid answer on.

1) AMI- is this calculated based on current salary/income, or average of prior 2 years tax returns? I ask, as my current yearly salary is above the AMI for my area. However if I were to average my '20&'21 returns (OR my '21 & '22 once completed) I would be under the AMI.

2) The location I am targeting (Hudson County NJ) is noted as a "High Cost Area" on the Freddie Mac Eligibility map. However, I have read that the 80% AMI cap is adjusted for high-cost areas. That said, I cannot find any info regarding this adjustment - so I am wondering if there's any further info on this, or if this is possibly old/incorrect info.



Appreciate any and all insight into the matter- and if there are any lenders floating around BP who work on HomePossible or other MFH Primary Packages in NJ, I would be open to chat!

Thanks in advance,

Kyle