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New American Funding along with Freddie Mac, is set to help borrowers who are having low income to be able to refinance.
A new refinance option is out for borrowers who are having 80% or below area median income, are eligible to take advantage of programs by Freddie Mac and Fannie Mae.
A borrower may be eligible to refinance their mortgage under this refinance option if their mortgage is owned or guaranteed by Fannie Mae or Freddie Mac.
To know if their mortgage is owned by Freddie Mac or Fannie Mae the borrowers simply can check the Freddie Mac Loan Look-up Tool or Fannie Mae Mortgage Loan Lookup websites.
According to the program, eligible borrowers should receive savings of a minimum of $50 on their monthly mortgage payment and a minimum reduction of 0.50% on their interest rate.
If a homeowner starts with the program then they are eligible to receive A $500 credit towards an appraisal.
The qualification required is:
- The borrower should have an owner-occupied 1-unit single-family mortgage being backed by Freddie Mac or Fannie Mae
- The income should be at or below 80% of the area median income
- The current mortgage should have originated at least a year ago
- In the last six months, the borrower has not missed any mortgage payment and should not have missed more than one payment in the last 12 months.
- The loan-to-value ratio of the mortgage should not exceed 97%, and the debt-to-income ratio should not be more than 65%, the borrower’s credit score be at least 620
This program offers only fixed-rate loans, its offers and features loan limits are up to the conforming limits.
Reference Source: PR Newswire
