New American Funding Offers RefiNow Option for Borrowers with Lower Income
Borrowers whose income held them back may now be able to refinance with New American Funding thanks to a new program from Fannie Mae.
Freddie Mac and Fannie Mae have adopted a new refinance option for loans to borrowers with incomes at or below 80% of area median income and you may be eligible to take advantage of this program. If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under this refinance option.
New American Funding is now offering Fannie Mae’s RefiNow™ program. The program requires that eligible borrowers receive a savings of at least $50 on their monthly mortgage payment and a reduction of their interest rate of at least 0.50%.
To qualify, you must:
- Have an owner-occupied 1-unit single-family mortgage that is backed by Fannie Mae
- Have an income at or below 80% of the area median income
- Have a mortgage that was originated at least 12 months ago
- Have not missed a mortgage payment in the last six months; have not missed more than one payment in the last 12 months
- Have a mortgage with a loan-to-value ratio lower than 97%, a debt-to-income ratio below 65%, and a credit score as low as 620
The program is for fixed-rate loans only, offer limited cash-out options, and feature loan limits up to the conforming limits.
You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following website:
Ready to save on your mortgage? Contact New American Funding today!