What is the RefiNow Program?

Recent world and economic events have left many people in a less than ideal financial situation. For those who own their own businesses as well as those going through a divorce or a life change, paying on a mortgage might be harder than it should be.

RefiNow is for those with higher-than-normal DTIs who need a chance to qualify to refinance their home at the current low rates. This is a program that was created as a directive that was backed by the Federal Housing Finance Agency and allowed Fannie Mae and Freddie Mac to expand the access for refinancing to those who qualify.

If you have found yourself in a position where you cannot pay your mortgage, this might be an option for you to explore to help you to keep your home during a tough financial period in your life.

Who is Eligible for RefiNow?

There are some requirements that you need to meet in order to qualify for this program. If you do not meet some of these conditions, you will not be eligible. Always make sure that you continue to make payments on your mortgage as long as you possibly can so that you do not cause issues with your ability to take advantage of this program.

• Have a Fannie Mae-backed mortgage for your primary home. For those backed by Freddie Mac, you will actually qualify for an identical program, that is called Refi Possible.
• Have a current median income that is at or below 80% of your area income. These are income limits that are set for areas of the country to help categorize borrowers.
• Have not missed a mortgage payment in the past 6 months. You can have one missed payment within the last 12 months, but no more.
• A 620 FICO score or better.
• A mortgage with a loan-to-value ratio that is up to 97%.
• A debt-to-income ratio of 65% or less.

These requirements will be asked for from the beginning of the process, so you will need to make sure that your situation meets all of these requirements before you inquire about this program. You will not be able to work on any aspect of these factors during the process to create improvements or change the status of a loan or your credit rating.

What Does This Program Do?

This program seeks to improve your monthly payment to make it more manageable and also to reduce your interest rate to allow you to be better able to pay off your mortgage quickly. For those who qualify, they can have their mortgage payment reduced by at least $50 and their interest rate reduced by at least 50 basis points. This is a big help if you have been struggling with a loan that seems like it will never be paid off and a payment that strains your reduced finances.

Some borrowers will also qualify for a $500 credit to cover the necessary home appraisal that is done as part of the process. They might also qualify for the market finance fee of .50% on loans that are $125,000 to be waived.

When Does it Expire?

This program is available starting June 5, 2021. Freddie Mac’s version of the program will be available in August of 2021. This program is not limited to the same servicer. As a new program, there is not a stated end date at this time for the initiative.

Despite the lack of a stated end date for the program’s lifespan, homeowners who believe that they qualify should make moves to take advantage of this program immediately. Many programs like this that are tied to world events such as the pandemic are not a long-term offering that is made available to those with a Freddie Mac or Fannie Mae mortgage.

How do I Start?

There are many ways to take advantage of this opportunity and you can contact Freddie Mac or Fannie Mae directly to inquire about the process. The entity which closed your mortgage for you or has been servicing it may also be able to help you to get started on applying for this relief opportunity.

If you are interested in taking advantage of this benefit, make sure that you look into this opportunity as soon as possible. Missed payments and other financial issues that can impact your credit will make it harder or impossible for you to take advantage of this program. There is no time like the present to make sure that you can keep your home and pay your mortgage.