24-131: Important Update and Extension of Temporary Down Payment Assistance for HomeReady and Home Possible Products

12/20/2024

Pennymac is pleased to announce that we are aligning with Fannie Mae and Freddie Mac’s recently announced update and extension of the temporary down payment assistance ($2,500) for very low-income purchase borrowers (VLIP) for HomeReady and Home Possible products!

Extension: The $2,500 VLIP assistance has been extended through February 28, 2026 with updated eligibility to require at least one borrower to be a first-time homebuyer (FTHB).

  • Pennymac will continue to accept deliveries of loans with the $2,500 VLIP assistance that do not include a FTHB through 1/10/2025 and purchased by 1/31/2025.
  • Loans delivered/purchased after these dates where at least one borrower is not a FTHB will not receive the $2500 VLIP assistance.

Loans under the extended $2,500 VLIP assistance program (FTHB requirement) must be delivered to Pennymac on or before 1/9/2026. The last day for Pennymac to purchase these loans is 1/30/2026.

Please see Pennymac Announcement 24-18 and Announcement 24-120 to reference prior Pennymac announcements. Please contact your Sales Representative with any questions.