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Refinance – Low-Income Borrower Refinance Option – Fact Sheet

Description:

On Wednesday, April 28, 2021, the Federal Housing Finance Agency (FHFA) announced that it is directing Fannie Mae and Freddie Mac (the Enterprises) to implement a new refinance option targeting low-income borrowers with Enterprisebacked single-family mortgages.

Borrowers eligible for this refinance option will benefit from a reduced interest rate and a lower monthly mortgage payment. This option will require that borrowers receive a meaningful benefit from refinaning: a minimum of a 50 basis point reduction in their interest rate and savings of at least $50 in their monthly mortgage payment. In addition, borrowers will receive a maximum $500 credit from the lender if an appraisal is required.

Document type:

  • Chart/Checklist

Agency:

Fannie Mae and Freddie Mac

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