New American Funding Offers Refi Possible Option for Borrowers with Lower Income
Borrowers whose income held them back may now be able to refinance with New American Funding thanks to a new program from Freddie Mac.
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 you may be eligible to take advantage of this program. If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under this refinance option.
New American Funding is now offering Freddie Mac’s Refi PossibleSM program. The program requires that eligible borrowers receive a savings of at least $50 on their monthly mortgage payment and a reduction of their interest rate of at least 0.50%.
Homeowners are also eligible to receive $500 credit for towards an appraisal if one is obtained.
To qualify, you must:
- Have an owner-occupied 1-unit single-family mortgage that is backed by Freddie Mac or Fannie Mae
- Have an income at or below 80% of the area median income
- Have a mortgage that was originated at least 12 months ago
- Have not missed a mortgage payment in the last six months; have not missed more than one payment in the last 12 months
- Have a mortgage with a loan-to-value ratio not to exceed 97%, a debt-to-income ratio not to exceed 65%, and a credit score as low as 620
The program is for fixed-rate loans only, offers and features loan limits up to the conforming limits.
You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following website:
For more information, contact your New American Funding Loan Officer today!