RefiPossible is a mortgage refinancing program created by Freddie Mac to help low- and moderate-income homeowners reduce their monthly housing costs. It caters to borrowers who may not qualify for traditional refinances due to income limitations.
Eligibility:
- The mortgage you're looking to refinance needs to be currently owned or guaranteed by Freddie Mac.
- Income limits apply (typically at or below 80% of the Area Median Income (AMI) for your location).
- Minimum credit score requirements vary, but can be as low as 620 with a slightly higher rate.
- No recent delinquencies on your current mortgage. Debt-to-income ratio (DTI) up to 65% may be considered.
- Refinancing a single-unit principal residence. Maximum loan-to-value (LTV) ratio limits apply (typically up to 97%).
Benefits:
- Reduced Interest Rate: RefiPossible aims to help you achieve a lower interest rate compared to your current mortgage, potentially leading to significant monthly savings.
- Lower Monthly Payment: The program's goal is to make homeownership more affordable by reducing your monthly payment.
- More Flexible Eligibility: RefiPossible offers broader eligibility compared to conventional refinances, focusing on income and making housing costs more manageable.
Considerations:
- Income Limits: You must meet the income limitations set for your area to qualify.
- Credit Score: While the minimum credit score can be lower than traditional options, it's still a factor.