If you’re a homeowner in a low-income bracket and have been making your mortgage payments on time, you may be eligible for the brand-new Freddie Mac Refi Possible℠ program! This refinance program is still being rolled out and will go into effect on August 30, 2021. This gives you plenty of time to prepare and take advantage of this great opportunity to refinance your home loan, allowing you to lower your interest rate, shorten your payment term, or enjoy one of the other multiple benefits of refinancing!
Is Freddie Mac Refi Possible℠ right for you? Keep on reading to learn more!
What is Freddie Mac Refi Possible℠
Freddie Mac Refi Possible℠ is introduced by Freddie Mac, with help from Fannie Mae and under the supervision of the Federal Housing Finance Agency. Through this program, Sellers are encouraged to help qualified homeowners by providing refinance opportunities. This is a “no-cash out” refinance loan, which you can use to lower your monthly payment, pay off your mortgage sooner, and potentially save thousands of dollars over the life of your loan! This program will be available for Manually Underwritten Mortgages and submissions to Freddie Mac’s Loan Product Advisor starting on August 30, 2021.
Benefits of Freddie Mac Refi Possible℠
By refinancing with the Freddie Mac Refi Possible℠, your monthly payment will be reduced by a minimum of $50 (but it can end up being hundreds more!). In addition, you can receive a $500 credit towards any appraisal costs if an appraisal is necessary. And because closing costs can be rolled into the mortgage loan, those who may have limited cash to close can still take advantage of this great program. Saving a couple extra hundred dollars every few months will really add up, and can turn into thousands as time goes on! Just think what you could do with thousands of extra dollars in savings!
Are You Eligible?
In order to be eligible to take advantage of Freddie Mac Refi Possible℠, your qualifying income cannot be more than 80% of the area median income for your location, and you must have a minimum Indicator score of 620. The mortgage being refinanced must be conventional and in the first lien position, and already owned by Freddie Mac. (If you’re not sure who owns your mortgage, you can check here to see if it’s owned by Freddie Mac or here to see if it’s owned by Fannie Mae.) Furthermore, the mortgage has to be at least 12 months old, but not older than 120 months (or 10 years). You cannot have been delinquent on your monthly mortgage payments by 30 days in the last 6 months, by 30 days more than once in the last 12 months, and by 60 days or more in the last 12 months. Essentially, you need to make sure that you’re making your mortgage payments on time in order to qualify. Freddie Mac’s Loan Product Advisor will make an assessment to determine eligibility for refinance applications.
In addition to the borrower and mortgage requirements listed above, the property being refinanced must be a one-unit primary residence. You can view other requirements on Freddie Mac’s website, and contact a Freddie Mac representative with any questions.
Ready to Refinance?
August is only a few months away! Read up on refinancing and be prepared to contact your lender to see if the Freddie Mac Refi Possible℠ program is right for you!