Refi Possible®
Freddie Mac Refi Possible® offers more options and newly expanded flexibilities to help you assist even more low-and moderate-income borrowers to consider refinancing their current loans to save on their monthly mortgage payments.
Refi Possible offers flexibilities to help borrowers take advantage of the current low interest rate market by refinancing their mortgages and lowering their monthly mortgage payments, which will help them achieve greater housing stability and build generational wealth. This refinancing option, targeted toward low- and moderate-income borrowers, may be especially beneficial for borrowers who may not believe they qualify for refinancing due to their incomes. Full requirements are found in Single-Family Seller/Servicer Guide (Guide) Chapter 4302.
Refi Possible Is for
- Low- and moderate-income borrowers who may not have realized the benefit of refinancing their current loan.
- Borrowers looking to save more on their monthly principal and interest payments.
- 1-unit primary residence, manufactured housing and all eligible property types homeowners.
Disclaimer
The information on this page is not part of, and is not a replacement or substitute for, the requirements found in the Freddie Mac Single-Family Seller/Servicer Guide and your other Purchase Documents.
Refi Possible Mortgage Features
- Property Type/Eligible Properties
Eligible Property Occupancy
- First Lien, conventional mortgage currently owned by Freddie Mac, in whole or in part, or securitized by Freddie Mac
- 1-unit primary residence
- All eligible property types permitted
The Seller is not required to evaluate if the condominium or cooperative project meets the project eligibility requirements, provided that:
- Seller represents and warrants that the project is not located in a condominium hotel, cooperative hotel, houseboat project, timeshare project or project with segmented ownership; and
- The project has insurance that meets the applicable insurance requirements of Guide Chapter 4703
- Income Limits
Borrower Income
Less than or equal to 100% area median income (AMI)
- Special Requirements
Loan Terms
- Fixed-rate only
- No super conforming, temporary subsidy buydowns or Texas Equity Section 50(a)(6) Mortgage
- Cash out limited to $250
- No existing secondary financing may be satisfied with proceeds
Standard LTV/TLTV/HTLTV limits
- 97%* maximum: 1-unit properties except for the following:
- 95% maximum: Manufactured homes
- 95%* maximum: Mortgage with non-occupying borrower
Note: *A TLTV ratio up to 105% is permitted when the mortgage is not secured by a Manufactured Home and secondary financing is an Affordable Second®.
- Eligibility/Underwriting
Minimum Indicator Score
No minimum requirement for Loan Product Advisor® (LPA®) and manually underwritten mortgages.
Note: There is no minimum Indicator Score required for eligibility of Refi Possible mortgages; however, the Seller must identify and deliver an Indicator Score for all Refi Possible mortgages in accordance with the requirements of the Guide Section 5203.2. If the Seller determines that there is no usable credit score due to insufficient information or inaccurate information, the mortgage is not eligible for sale to Freddie Mac.
Maximum Debt-to-Income Ratio
65% for LPA and manually underwritten mortgages
Income Verification/Documentation
Primary Base Non-Fluctuating
- YTD paystub and 10-day pre-closing verification (PCV) (or written verification of employment (VOE) and PCV)
Primary Hourly Fluctuating
- YTD paystub, most recent W-2 and10 day PCV (or written VOE and 10-day PCV)
Primary Other Fluctuating (e.g. overtime, bonus etc.)
- YTD paystub, most recent W-2 and 10-day PCV (or written VOE and 10-day PCV)
Military
- Most recent Leave and Earnings Statement
Self-Employed
- Most recent complete individual and business tax return and third-party verification of the current existence of the business dated no more than 120 days before Note Date
Alimony, Child Support or Separate Maintenance
- Most recent one month documentation to evidence receipt of the alimony, child support and/or separate maintenance payment amount. A copy of the signed court order, legally binding agreement and/or final divorce decree verifying the payor’s obligation for the previous one month, including the amount and duration of the obligation.
Note: For all other income types and characteristics; standard Guide requirements apply
- Collateral Assessment
- Standard property valuation – Automated Collateral Evaluation (ACE) or appraisal required
- A $500 credit will be provided to the Seller when an appraisal is obtained. The Seller must pass the credit to the borrower
For More Information:
Contact your Freddie Mac representative or the Customer Support Contact Center (800-FREDDIE).