Freddie Mac Refi Possible℠ Frequently Asked Questions
How is a Refi Possible mortgage different from a Freddie Mac Home Possible® mortgage refinance?
At a high level, a Refi Possible mortgage would be a better refinance option for borrowers who may not qualify for Home Possible; this could include borrowers with higher debt-to-income (DTI) ratios or who have limited funds to pay for upfront appraisal costs. However, both offerings provide benefits to serve lower-income borrowers.
Can a Refi Possible mortgage be amortized for a period other than 15, 20, or 30 years?
Refi Possible mortgages are available for all eligible fixed-rate mortgage terms.
What property types are permitted under Refi Possible?
All property types eligible under the Guide, including manufactured homes.
Can Refi Possible be combined with Home Possible?
No, these are two distinct Freddie Mac product offerings with each having benefits to serve lower-income borrowers. These offerings cannot be combined. The Seller should review complete requirements for Refi Possible and Home Possible to determine which of the two offering suits the borrower best.
Can a borrower who has a low credit score qualify for Refi Possible?
Yes. There is no minimum indicator score required for eligibility for Refi Possible mortgages. However, the seller must identify and deliver an indicator score for all Refi Possible mortgages in accordance with the requirements of Guide Section 5203.2(e) If the seller determines that there is no usable credit score due to insufficient information or inaccurate information, the mortgage is not eligible for sale to Freddie Mac.
Can a borrower who does not have a usable credit score due to insufficient or inaccurate information qualify for Refi Possible?
No. If no borrower has a usable credit score, then the mortgage does not have an Indicator Score and is not eligible for delivery to Freddie Mac as Refi Possible.
Can a mortgage with a recent history of forbearance be refinanced as a Refi Possible mortgage?
If the borrower makes all payments while the loan is in forbearance, a mortgage can be refinanced as a Refi Possible mortgage. The mortgage must meet Refi Possible payment history requirements, which does not allow recent missed payments.