What is FNMA RefiNow?
RefiNow™ is an affordable refinancing option aimed at making it easier and less expensive for qualifying homeowners to reduce their monthly housing costs by taking advantage of lower interest rates.
Freddie Mac and Fannie Mae have adopted a new refinance option for loans to borrowers with incomes at or below 80% of area median income and your borrowers may be eligible to take advantage of this program. If their mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, they may be eligible to refinance their mortgage under this refinance option.*
RefiNow offers features that help to address some of the barriers to refinance and is a great option for creditworthy borrowers who may not have previously qualified.
- Refinance an existing Fannie Mae mortgage into a new Fannie Mae mortgage
- Limited cash-out refinance
- Maximum LTV up to 97%
- 10-, 15-, 20-, 25-, 30-year fixed rate terms
- 620 minimum qualifying credit score
What are the benefits?
- This refinance option requires a reduction in the homeowner’s interest rate by a minimum of 50 basis points and a savings of at least $50 in the homeowner’s monthly mortgage payment.
- RefiNow provides a $500 credit from Fannie Mae to the lender at the time the loan is purchased if an appraisal was obtained for the transaction. The lender must pass the credit to the homeowner.
- RefiNow also waives the 50 basis point up-front adverse market refinance fee that Fannie Mae otherwise charges to lenders on balances at or below $300,000.
Who is eligible for RefiNow Financing?
Eligible borrowers must have
- A Fannie Mae-backed mortgage secured by a 1-unit, principal residence;
- A current income at or below 80% of the AMI (not the income as of origination of the original loan);
- Not missed a mortgage payment in the past six months, and no more than one missed mortgage payment in the past 12 months; and
- A mortgage with a loan-to-value ratio up to 97%, a debt-to-income ratio of 65% or less, and a minimum 620 FICO score.
*Freddie Mac’s Refi Possible program is not available until August 2021; we will accept submissions for Refi Possible beginning August 31, 2021.Your borrowers can determine whether their mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites: Freddie Mac Loan Look-up Tool or Fannie Mae Mortgage Loan Lookup.