On this page
- RefiNow and Refi Possible: the quick answer
- How RefiNow and Refi Possible work
- RefiNow and Refi Possible eligibility checklist
- The rate test: will RefiNow or Refi Possible lower your payment?
- How to find out who owns your loan
- If you do not qualify for RefiNow or Refi Possible
- RefiNow and Refi Possible FAQ
RefiNow and Refi Possible are still available. They are refinance options for homeowners whose income is at or below 100% of the area median income (AMI) and whose current loan is owned by Fannie Mae (RefiNow) or Freddie Mac (Refi Possible). Even so, the new loan must cut your interest rate by at least 0.50 percentage point and lower your monthly payment, so the programs only help when your current rate is high enough above today’s rates.
RefiNow and Refi Possible: the quick answer
Fannie Mae runs RefiNow, which many people search for as “Refi Now.” Freddie Mac runs Refi Possible. Both are versions of a standard conventional refinance with a few rules relaxed for lower-income borrowers, such as a 65% debt-to-income limit and no minimum credit score.
Fannie Mae’s Lender Letter LL-2021-10, last updated Aug. 26, 2026, says “there is currently no expiration date” for RefiNow. Likewise, the current Refi Possible requirements in Freddie Mac’s Guide Section 4302.5 took effect July 1, 2026.
To use either program, you must pass two tests:
- Income: the income your lender uses to qualify you is at or below 100% of the AMI for your home’s location.
- Benefit: the new loan lowers your rate by at least 0.50 point (50 basis points) and lowers your monthly principal, interest and mortgage insurance payment.
Why the programs exist
Fannie Mae’s lender letter says lower-income borrowers have typically refinanced more slowly than higher-income borrowers, so they may miss chances to lower their payment. RefiNow became available on June 5, 2021, and Freddie Mac introduced Refi Possible the same year in Guide Bulletin 2021-17.
How RefiNow and Refi Possible work
The process looks like most refinances, with an income check and a benefit test added.
- Find out who owns your loan. Use the Fannie Mae and Freddie Mac lookup tools.
- Ask a lender about the matching program. RefiNow covers only Fannie Mae loans, and Refi Possible covers only Freddie Mac loans.
- Apply and document income. For example, a salaried borrower usually needs a year-to-date paystub.
- Let the lender check your income against the AMI. Fannie Mae’s or Freddie Mac’s underwriting system or eligibility tool checks this.
- Get a rate quote and run the benefit test. The rate must drop by at least 0.50 point, and the payment must drop too.
- Complete the valuation. If an appraisal is done, the lender must pass a $500 credit from Fannie Mae or Freddie Mac on to you.
- Close. You can take no more than $250 in cash, and any extra goes toward your principal.
RefiNow vs. Refi Possible: the differences
Most rules match, but a few differ.
| Rule | RefiNow (Fannie Mae) | Refi Possible (Freddie Mac) |
|---|---|---|
| Current loan must be owned by | Fannie Mae | Freddie Mac |
| Late payments allowed | None 30 days late in the last 6 months; at most one in months 7 to 12 | Same, and none 60 or more days late in the last 12 months |
| Manufactured homes | Eligible; 95% LTV cap unless MH Advantage | Allowed with a 95% LTV cap |
| Loan size | General conforming limit only (no high-balance) | No super conforming loans (the same limit) |
| Repeat use | Can be used only once | The current loan cannot already be a Refi Possible loan |
RefiNow and Refi Possible eligibility checklist
These rules come from Fannie Mae LL-2021-10 and Freddie Mac Guide chapter 4302. Lenders can add stricter rules of their own (called overlays), so a lender may say no even when you meet the program rules.
Income
Your qualifying income must be at or below 100% of the AMI for the location of the home. The test counts the income of each borrower on the new loan that the lender uses to qualify you. Therefore, it is not the same as total household income.
Your current loan
- It is a conventional first mortgage owned or securitized by Fannie Mae or Freddie Mac.
- At least 12 months have passed from its note date to the new note date. See how soon you can refinance for general timing rules.
- The same borrowers stay on the loan. One borrower can come off only after a death, or if the remaining borrower made the last 12 months of payments from their own funds.
Your new loan
The new loan must be a fixed-rate loan with no temporary buydown, and it cannot be a Texas Section 50(a)(6) home equity loan. Also, a RefiNow loan cannot be combined with a HomeReady refinance.
Payment history
You can have no 30-day late payment in the last six months and no more than one in the last 12 months. In addition, Refi Possible bars any payment 60 or more days late in the last 12 months.
Loan-to-value ratio
The loan-to-value ratio (LTV) is your loan balance divided by the home’s value. Refi Possible allows up to 97% for a one-unit home. RefiNow allows up to 97% when the loan is approved through Fannie Mae’s Desktop Underwriter, and 95% when it is underwritten manually. However, the cap drops to 95% when a borrower on the loan will not live in the home. It is also 95% for a manufactured home under Refi Possible, and for a manufactured home that is not MH Advantage under RefiNow.
Debt-to-income ratio
Your total debt-to-income ratio (DTI) can be as high as 65% under both programs. DTI is your monthly debt payments, including the new mortgage, divided by your gross monthly income.
Credit
Neither program sets a minimum credit score. Still, a credit score must be on file. In addition, RefiNow still applies Fannie Mae’s waiting periods after a bankruptcy or foreclosure, and Freddie Mac applies its recovery periods to manually underwritten Refi Possible loans.
Property
The home must be a one-unit principal residence. For example, a house, townhouse, condo or manufactured home can qualify, but a second home, rental or 2–4 unit property cannot. For a condo mortgage, both programs let the lender skip the full project review if the building meets a shorter list of conditions.
The rate test: will RefiNow or Refi Possible lower your payment?
Your new rate must be at least 0.50 point below your current note rate, and the new principal, interest and mortgage insurance payment must be lower. Neither program promises either result. Instead, the lender has to prove both before Fannie Mae or Freddie Mac will buy the loan.
Freddie Mac’s weekly survey put the average 30-year fixed rate at 7.11% on November 12, 2026. Whether you can pass the 0.50-point test depends on how your rate compares with that. Also, Fannie Mae’s lender letter says all of its standard loan-level price adjustments apply to RefiNow loans, so your credit score and LTV can still affect the price.
An example
Say a homeowner took out a $300,000, 30-year fixed loan at 7.75% three years ago. After 36 payments, the balance is about $291,449, and the homeowner refinances that balance into a new 30-year fixed loan. The figures are principal and interest only, without property taxes, homeowners insurance or mortgage insurance.
| Current loan at 7.75% | New loan at 7.25% | New loan at 7.50% | |
|---|---|---|---|
| Monthly payment | $2,149.24 | $1,988.20 | Not eligible |
| Rate cut | n/a | 0.50 point (passes) | 0.25 point (fails) |
At 7.25%, the payment falls by $161.04 a month. That figure comes before closing costs. At 7.50%, the payment would also drop, but the loan fails the rate test.
Closing costs, the reset term and break-even
Both programs let you roll closing costs into the new loan. Fannie Mae removed its old $5,000 cap on financed costs in October 2021. However, a larger balance means a higher payment, so financed costs shrink the monthly savings. (See how much it costs to refinance for the usual fees.)
Next, look at the break-even point. Say the closing costs in the example were $5,000 paid in cash. At $161.04 a month, you would need about 31 months to earn that back. If you might sell or refinance again before then, the refinance may not pay off.
The term matters too. In the example, the old loan had 324 payments left, about $696,354 in total. The new loan restarts the 30-year clock, and 360 payments of $1,988.20 add up to about $715,752. So the lower payment costs roughly $19,398 more over the life of the loan unless you pay extra principal. Our guide on whether refinancing is worth it walks through this tradeoff.
If the numbers work for you, compare quotes from more than one lender, since the rate decides whether you pass the test.
How to find out who owns your loan
Your servicer, the company you send payments to, can be different from the owner of your loan. Because RefiNow and Refi Possible depend on the owner, check that first. Both lookup tools are free:
- Fannie Mae: the Fannie Mae Loan Lookup Tool asks for your name, property address and the last four digits of your Social Security number.
- Freddie Mac: the Freddie Mac Loan Look-Up Tool asks for your property address and, optionally, the last four digits of your Social Security number.
If neither tool finds your loan, a bank may own it or FHA, VA or USDA may back it, so neither program applies. Also, Fannie Mae warns that its results may not be complete, so confirm with your servicer if something looks wrong. Freddie Mac’s Refi Possible page also links to its tool.
If you do not qualify for RefiNow or Refi Possible
Failing one rule still leaves other options:
- Income above 100% of AMI, or you want different terms: a standard conventional refinance has no income cap, though DTI and credit rules are stricter.
- You want a low-paperwork refinance: our page on the conventional streamline refinance covers the options for a conventional loan.
- LTV above the program cap: see these high LTV refinance options.
- You need other help with housing costs: our list of low-income home loans and mortgage programs covers other options.
- Behind on payments: call your servicer. Fannie Mae’s lookup page points owners of its loans to forbearance plans and loan modifications.
If you think you qualify, start with the lookup tool. Then ask a lender to run the 0.50-point test on your current rate before you pay for anything.
RefiNow and Refi Possible FAQ
Are RefiNow and Refi Possible still available?
Yes. Fannie Mae updated its RefiNow lender letter on Aug. 26, 2026, and says the option has no expiration date. Similarly, Freddie Mac’s Refi Possible rules remain in its Guide, with Section 4302.5 effective July 1, 2026.
What is the income limit?
Your qualifying income must be at or below 100% of the area median income for the home’s location. The figure varies by location, so your lender checks it for your address. RefiNow started at 80% of AMI in 2021, but Fannie Mae raised the limit to 100% in October 2021.
Can I use RefiNow or Refi Possible with a credit score under 620?
Possibly. Neither program sets a minimum score, but a score must be on file. Fannie Mae removed the 620 RefiNow minimum on April 6, 2022. However, some lenders set their own minimum, so ask before you apply.
Can I use them on a condo or manufactured home?
Yes, if it is your one-unit principal residence. Both programs relax the condo project review. For a manufactured home, the LTV cap is 95% under Refi Possible, and under RefiNow unless the home is MH Advantage.
