RefiNow Refinance

Low-Income Borrower Refinance Option

Under Fannie Mae's newly-implemented Low-Income Borrower Refinance Option, RefiNow, homeowners earning 80% or less of the median household income for their area may be eligible for assistance.

This program estimates eligible borrowers will benefit from reduced interest rates and monthly payments, up to $250 lower per month in some cases. Borrowers may also receive a credit of up to $500 toward an appraisal on their property if an appraisal is required.

RefiNow was created to assist low-income homeowners accessing the low-interest refinancing options more easily accessed by high-income borrowers. To date, many low-income borrowers have been less likely to take advantage of these favorable conditions.

Eligible borrowers must:

1. Have a mortgage backed by Fannie Mae on a one-unit, owner-occupied property. Not sure if your mortgage is backed by Fannie Mae? Check it here.
2. Earn 80% or less than the median income for their area. Interested applicants can check the median income for their area on the U.S. Housing and Urban Development website.
3. Have no missed payments in the past six months and no more than one missed payment in the past 12 months.
4. Have an existing loan-to-value ratio not greater than 97%, a debt-to-income ratio not above 65%, and a FICO credit score equal to or greater than 620.