FNMA has limited time Home Ready offering for buyers whose income is less than or equal to 50% of the applicable area median income (AMI) for the collateral location.

It's $2500 that must be used for down payment and closing costs.
They call it an LLPA credit which leads me to question where I should show this on the Closing Disclosure.
Any guidance is appreciated.

Yeah - not really sure. You might want to touch base with your FNMA rep. It is not real clear in any of the guidance documents I could find, such as this one. https://singlefamily.fanniemae.com/media/8316/display

Sounds like you would just have to show lender paid closing costs as paid by the lender.

If you have someone that knows the FNMA datasets mapping, they can probably use this. https://singlefamily.fanniemae.com/media/37856/display

It looks to me like it goes in section L under Other Credits based on the UCD codes they are asking for. According to the docs, it needs to be mapped correctly for DU, UCD, and ULDD for them to cover it. Getting with your rep is not a bad idea.

Thank you both.
I was good with the placement as a credit until I read that LLPA part in the announcement bulletin.
I'll give the rep a call on Tuesday but we all know it will just be one person's interpretation and nothing they'll commit to in writing.

I received a "job aid" from my Freddie Mac rep that showed delivery should be as a grant from a federal agency. We are also listing it as an "other credit" on the Closing Disclosure. I'm excited about this offering, but wish they would have given a bit more direction!