4.28.21
On April 28, the Federal Housing Finance Agency (FHFA) announced a new refinance option for certain low-income borrowers who have a Fannie Mae or Freddie Mac backed loan and own a single family home. Qualifying borrowers’ income must be at or below 80% of the median income for their area with no missed payments in the past six months and no more than one missed payment in the past 12 months. Additionally, the homeowner cannot have a mortgage with a loan-to-value ratio greater than 97%, a debt-to-income ratio above 65%, or a FICO score lower than 620. The refinancing option will be available to eligible borrowers beginning this summer and the FHFA estimates the program could save borrowers an average of $100 to $250 a month.