Have you tried to refinance in the past year or so into historically low interest rates, but did not get approved because you didn’t qualify due to low income? It’s so disheartening to know you can save so much money, but don’t fit within lender guidelines.
Well, now an opportunity has come up that may be able to help you. If you or someone you know struggled with this last year, you may now have a chance to refinance. There is a new loan program called Fannie Mae RefiNow™, which is purported to help 2 million homeowners. Here are some of the benefits:
- A lower interest rate because the .5% refinance fee on “normal” mortgages is waived
- $500 credit provided towards the appraisal cost, assuming an appraisal is required
- lower interest rate and monthly payment
- if an appraisal is required, the lender will credit you up to $500 of that cost
To be eligible for this loan program, here are some of the requirements.
- Your current loan must be owned by Fannie Mae. Check your status here.
- Your home must be your primary home and a 1 unit property (single-family, condo or townhouse)
- You must be at or below 80% of your area’s median income, which you can find here.
- Maximum Loan-to-Value (LTV) ratio of 97%
- Minimum credit score 620
- Max Debt-to-Income (DTI) ratio of 65% (under a “normal” refinance, that typically only allows up 45% DTI, sometimes we can get approval up to 50%, but not past that.
- No late mortgage payment on your current loan in the past 6 months, and no more than 1 late payment in the past 12 months
If you think you qualify, reach out to me and we can see if you can take advantage of this opportunity while rates remain low.