Fannie Mae and Freddie Mac came out in early June. but new low income refinancing option for homeowners, which will save them roughly $ 100 to $ 250 per month. Fannie Mae has now released a program update that will allow homeowners in the COVID-19 abstinence zone to also take advantage of the refinancing opportunity.
IN Lender’s letter Posted on Wednesday, Fannie Mae made three key updates to its program:
- Allow concurrent refinancing of current subordinated financing or a second debt that pays off an amount not covered by the underlying mortgage.
- Allow borrowers who missed payments during Withdrawal period from COVID-19 to be eligible
- Clarified the lender’s requirements for receipts for program payments.
If you are considering refinancing your mortgage, you can use Credible to find out what options and interest rates are available to you.
Under the previous conditions, Fannie Mae required homeowners not to miss home loan payments in the past six months and to have only one missed payment in the last 12 months. While this was a weaker requirement than what is usually required to refinance a mortgage, this week’s update further clarified who is eligible for refinancing.
Borrowers who missed a mortgage payment in the past 12 months due to a COVID abstinence period can now still refinance if certain conditions are met. Fannie Mae requires homeowners to be aware of their mortgages before using RefiNow’s low-income refinancing option. However, homeowners can fulfill this requirement in several ways.
If you would like to know if you are eligible for low income refinancing through Fannie Mae, visit Credible to speak with a home loan specialist and get answers to all your questions.
One way for homeowners to keep abreast of their mortgages is to simply pay back the missed payments. This will qualify them to be eligible to refinance Fannie Mae. However, for many, this is not possible.
Fannie Mae also offers several loss mitigation solutions whereby the homeowner is still eligible to use the refinancing option. Here are the ways A homeowner with a mortgage loan secured by Fannie Mae can get a current mortgage:
- Repayment plan: Homeowners had to make three payments under the new repayment plan or complete the repayment plan, whichever comes first. There is no requirement for the repayment plan to be completed.
- Deferment of payment: This allows homeowners to defer missed payments until the loan maturity date or when they sell or refinance a loan. The borrower must make three consecutive payments after the date of the deferred payment agreement.
- Loan modification: This changes the terms of the loan, for example, it changes the number of years remaining until the loan is paid off, or lowers the interest rate to decrease monthly payments. The borrower must complete a three-month trial payment period.
If the homeowner has another loss mitigation program that is not listed, he must either complete the program or make three full consecutive monthly payments. If they meet these requirements, low-income homeowners will be eligible to refinance their mortgages through the Fannie Mae RefiNow program.
To better understand what refinancing options are available to you, you can refer to You can contact the lender.
Other eligibility requirements include income not exceeding 80% of the regional median income, having a loan secured by Fannie Mae or Freddie Mac, having at least 3% of your home equity, and a credit rating of at least 620.
These are all lower requirements than typical mortgage refinancing and the goal of the program is to allow those most affected by the COVID-19 pandemic to take advantage of today’s historically low interest rates by refinancing their mortgages and saving on monthly payments.
Check plausibility to see how much you can save and view rates from multiple lenders at once.
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