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