FHLMC Refi Possible

Refi Possible 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 100% 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.*

Refi Possible 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 Freddie Mac mortgage into a new Freddie Mac mortgage
• Maximum LTV up to 97%
• 10-, 15-, 20-, 25-, 30-year fixed rate terms
• 620 minimum qualifying credit score.

This refinance option requires a reduction in the homeowner’s interest rate by a minimum of 50 basis points and allows any reduction in the monthly payment that includes principle, interest, and the mortgage insurance payment.

Refi Possible provides a $500 credit from Freddie Mac 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.