Announcement 2021-066 - Freddie Mac Refi Possible Refinance Option

Newrez is pleased to announce the release of Freddie Mac’s Refi Possible Option. Refi Possible offers expanded eligibility to benefit low-income borrowers to take advantage of the low interest rate environment.



  • Freddie Mac must own the existing mortgage being refinanced
  • Single-family residences
  • Primary residence
  • Borrower’s current income must be less than or equal to 80% of the area median income (AMI) for the subject property
  • Existing loan must be at least 12-months old but not more than 120 months old from the original note date to the new note date
  • Housing payment history for existing mortgage
    • No late payments in the most recent six months; and
    • No more than one late payment in months 7 to 12
  • Maximum 97% LTV/CLTV
  • Debt to income ratio up to 65%
  • Minimum 620 credit score
  • Borrower must receive the following benefits with the refinance
    • Monthly payment must be reduced by at least $50.00
    • Interest rate must be reduced by at least .50%
  • Cash back to the borrower not to exceed $250
  • Financed closing costs, prepaid items, and points not to exceed $5,000
  • A $500 appraisal credit will be provided, at closing, if an appraisal is obtained
  • LPA Accept required. Manually underwritten loans not permitted
  • All loans submitted to LPA will be evaluated using certain eligibility criteria of Refi Possible. If the loan meets certain eligibility criteria, LPA will return a message indicating that this loan meets Refi Possible income limit requirements and the loan should be resubmitted with the Refi Possible offering identifier in order to be assessed as a Refi Possible mortgage.
  • A project review is not required for condo, co-ops, and PUD projects with the following exceptions
    • Confirm that the project is not a condo or co-op hotel, or motel, houseboat, timeshare, or segmented ownership project
    • Confirm the appropriate property and flood insurance
  • Standard Mortgage Insurance coverage is required on all loans with an LTV greater than 80%.
    • Borrower Paid Monthly MI only



Freddie Mac Refi Possible product profile located in the Credit Policy & Product Development NewRez Lending Library

Refi Possible training will be available in the Hive for all Loan Officers and MLCs

Freddie Mac Bulletin 2021-17 Introduction of the Freddie Mac Refi Possible Option

     Refi Possible FAQ