“This loan program is designed to help borrowers who missed the opportunity to refinance due to other circumstances,” said Kevin Crichton, President and COO of EMM. “We are proud to be doing our part in potentially helping millions of homeowners through the RefiNow program.”
The program has qualifying factors, and one must be an existing FNMA borrower, living in a single-family home or condo to qualify. Additionally, the borrower must have an income level that is at or below 80% of the area median income.
To increase eligibility, RefiNow is available to those with a debt-to-income ratio of up to 65% and can be used to finance 97% of the value of the home. The borrower needs to have had the existing loan for longer than 12 months, have no missed mortgage payments in the last six months and no more than one in the last year. To help more qualify for a refinance, the program allows a FICO Score as low as 620.
Closing costs can also hamper refinancing, making it more costly to refinance. To help rectify this, RefiNow offers up to $500 at closing to cover the cost of an appraisal, should one be needed. Finally, for loan balances at or below $300,000, the Enterprises will waive the 50-basis point up-front adverse market refinance fee that would otherwise be charged to the lender.
“If you have clients that have tried to refinance in the past and it didn’t work out, or if you just thought that they would never qualify for one reason or another, now is the time to recontact them and see if you can put this program to work. Interest rates won’t stay this low forever,” Crichton continued.