A large number of lower-income homeowners can benefit from a new refinance program being launched by the U.S. government.
This program can enable more borrowers to refinance to a lower interest rate and reduce their monthly mortgage payments.
RefiNow Borrower Eligibility Requirements
The borrower's income must be less than or equal to 80% of the applicable AMI limit for the subject property's location.
The current loan must be backed by Fannie Mae or Freddie Mac.
You must have no missed payments in the previous 6 months and no more than one missed payment in the previous 12 months.
RefiNow Existing Loan Eligibility
Under the current eligibility guidelines, a loan must:
- be a conventional mortgage loan owned by Fannie Mae. Check here if your loan is a Fannie Mae loan.
- be seasoned at least 12 months but no more than 120 months (from the original note date to new loan note date).
- have an income at or below 80% of median income in your area.
- have no missed payments in the previous 6 months and no more than one missed payment in the previous 12 months.
The New RefiNow Loan Eligibility
If you meet the eligibility requirements, you can qualify for:
- a maximum loan-to-value (LTV) ratio of 97% (with a minimum credit score of at least 620).
- a reduction in your monthly mortgage payment by as much as 0.50% with a lower rate.
- a lender credit of $500 for appraisals.