Refinancing Gets Easier

November 9, 2021
Recent updates to Freddie Mac’s Refi Possible mortgage program will help low to moderate income borrowers.


Freddie Mac released Guide Bulletin 2021-33: Eligibility Expansion for Refi Possible Mortgages. This bulletin announced updates to the Freddie Mac Refi Possible mortgage program in order to help more low- to moderate-income borrowers refinance their loans and take advantage of today’s low market rates. Freddie Mac is expanding the eligibility of their offering by:

  • Increasing the borrower income eligibility from 80% to 100% of area median income (AMI).
  • Removing the requirement that the borrower’s monthly payment be reduced by at least $50. However, Freddie Mac will still require a reduction in the monthly payment and at least a 50 basis points (0.50%) reduction in interest rate.
  • Removing the maximum 10-year (120 months) seasoning requirement.
  • Removing the $5,000 cap on financed closing costs.

The removal of the required $50 monthly payment reduction and the removal of the cap on financed closing costs are effective immediately. The changes related to the AMI and the seasoning requirements will become effective in January 2022. A firm effective date will be announced in a December Selling Bulletin. 

Source: Freddie Mac