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AMI income limits: why being upfront helps you

Educational guide · Updated 2026

Some of the best mortgage deals — lower down payments, reduced mortgage insurance, even grant money — are reserved for buyers at or below certain income levels. These thresholds are usually expressed as a percentage of Area Median Income, or AMI, for the specific county where you're buying.

How AMI works in practice

If the AMI for a household of 4 in your county is $95,000/year, a program capped at 80% AMI would require your household income to be under $76,000. A program at 120% AMI would allow up to $114,000. These limits are recalculated annually by HUD, so the number that applied last year may have changed.

What AMI is

AMI is the midpoint income for a given area, published by HUD and adjusted for household size. Because it's local, the same dollar income can be "low" in an expensive metro and "high" in a low-cost county. Programs often set eligibility at thresholds like 80%, 100%, or 120% of AMI.

Why income disclosure can work in your favor

It's natural to think a lower income hurts your application. But for income-restricted programs, being at or below the limit is exactly what qualifies you for the better terms. Programs like Fannie Mae's HomeReady and Freddie Mac's Home Possible, for example, offer reduced mortgage insurance and low down payments specifically to buyers under their income caps.

That means giving your lender a complete, accurate picture of your income isn't just about honesty — it can be what unlocks a cheaper loan. A lender who knows you fall under an AMI threshold can steer you toward programs you'd otherwise miss.

How to find your area's AMI

HUD publishes AMI figures by county and household size, and many state housing finance agencies have quick lookup tools tied to their programs. Always confirm current limits with the specific program, since they update periodically and vary by household size.

Frequently asked questions

Where do I find the AMI for my area?

HUD publishes annual AMI limits by county and household size at huduser.gov. Your state housing finance agency also publishes the specific limits for programs in your state.

Does AMI include all household income?

Yes. Most programs count all income from all adult household members who will be on the mortgage, not just the primary borrower.

Can AMI limits change after I apply?

Programs typically lock you into the limits at the time of application. A mid-year change usually won't affect an in-progress application.

This article is educational and general in nature. Loan programs, eligibility, and terms vary by lender and your individual situation, and specialized products like these often have stricter requirements and higher rates. Confirm details with a licensed lender.