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Fannie Mae just opened a new mortgage refinance program. This program targets low and moderate income borrowers. Right now, mortgage rates are still low due to the pandemic. Therefore, it is a great time for homeowners to seek refinancing. However, many lenders have implemented tight credit standards. Therefore, many people have not been able to refinance to a lower rate.
With this in mind, the FHFA (Federal Housing Finance Agency) announced a new refinance option for low and moderate income borrowers with mortgages from Fannie Mae and Freddie Mac. this new mortgage refinance program is meant to help borrowers who have not refinanced save between $1,200 and $3,000 a year on their mortgage payments.
These are the guidelines required to qualify for this mortgage refinance program:
- Have a mortgage backed by Fannie Mae on a one-unit, single-family property. Investment properties and second homes are not eligible.
- Make 80% or less of your area’s median income.
- Not have missed a mortgage payment in the last six months. In fact, borrowers cannot have more than one missed payment in the past year to qualify.
- Have a loan-to-value ratio of 97% or less, a debt-to-income ratio of 65% or less and a FICO score of 620 or higher.
If you are looking to refinance your home, contact your lender for more information. Not all lenders will participate in the program.
Read full article here: https://www.miamiherald.com/news/business/article252033403.html