Low income borrowers who have previously had difficulty qualifying for a new, lower interest rate refinance may be eligible beginning June 5, 2021, through Fannie Mae’s new RefiNow program. The Federal Housing Finance Agency (FHFA) said it expects borrowers who refinance through the initiative to save between $100 and $250 a month, as reported by Mortgage News Daily.
- Program Highlights
- 1-unit primary residences.
- Borrower income must not exceed 80% of Area Media Income (AMI).
- Current mortgage must be owned by Fannie Mae®.
- Debt-to-income must not to exceed 65%.
- Minimum 620 credit score with no missed mortgage payments in 6 months and no more than 1 in 12 months.
- Receive up to $500 credit for appraisal costs.
- New loan must show a reduction of 0.5% in interest rate and at least $50 in monthly savings.
- Program eligibility starts June 5, 2021.
For more information, contact Supreme Lending’s Mortgage Dream Team today!