Minimum FICO Dropped from Refi Now & Refi Possible

Fannie Mae and Freddie Mac are making it easier for low-income borrowers to qualify for its RefiNow and Refi Possible programs – it’s removing the minimum credit score requirement of FICO 620 effective April 23rd.

These programs are rate/term refinance options for low-income borrowers with an existing Fannie Mae or Freddie Mac loan who may not have already taken advantage of refinancing. The maximum loan-to-value (LTV) ratio is 97%.

ABOUT REFINOW & REFI POSSIBLE

• Limited to owner-occupied, 1-unit primary residence financed through Fannie Mae or Freddie Mac
• Lowers interest rate by 0.5% and monthly payment by at least $50
• Maximum 97% LTV
• Maximum DTI 65%
• Income at or below 100% of the area median income (AMI)
• Borrower will receive $500 credit at closing if they have an existing appraisal
• Reduced Documentation requirements