Do you qualify for refi plan?

• No minimum credit score is required. However, borrowers whose credit is impaired may be offered a higher interest rate.
• The borrower must complete a standard loan application.
• An appraisal may be required.
• More information can be found on Fannie Mae's Web site.

Freddie Mac Relief Refinance Mortgage rules

• To qualify, the borrower must have an existing mortgage that is owned or guaranteed by Freddie Mac. To find out whether Freddie Mac owns or guarantees your loan, call (800) 373-3343, call your loan servicer or search for your loan on Freddie Mac's Web site.
• Borrowers can apply for this program through their current loan servicer or any Freddie Mac-affiliated lender. Borrowers who apply through their current servicer won't have to have their loan re-underwritten in most cases, but borrowers who switch to a different lender will have to have their loan re-underwritten.
• The new mortgage can be a 15-, 20- or 30-year, fixed-rate loan or an adjustable-rate mortgage  with an initial term of five, seven or 10 years. The loan must be fully amortizing (i.e., not an interest-only or payment-option loan). An existing fixed-rate mortgage may not be refinanced with an ARM.
• The property may be a vacation/second home if the existing mortgage was originated as a second-home loan or the borrower now occupies the home as a principal residence.
• The property may be an investment property if the existing mortgage was originated as an investment property or the borrower now occupies the home as a principal residence.
• The existing loan, new loan or both may be a so-called "super-conforming" loan limit within the applicable loan limit for the area.
• If the original loan is covered by mortgage insurance, the insurer must agree to transfer the insurance to the new loan.
• The new loan cannot be used to make a payment on or pay off a second loan.
• Lenders are encouraged to use Freddie Mac's automated valuation model, or AVM, to estimate the property's current market value. Borrowers should ask whether a new appraisal will be required.
• Borrowers may be able to finance an additional $5,000 or up to 4 percent of the new loan amount, whichever is less, to pay closing costs, financing costs or prepaid sums due at closing.
• Borrowers whose monthly payment increases 20 percent or more must provide income and employment documentation and have an acceptable credit score and debt-to-income ratio to demonstrate they can afford the new higher payment. (This scenario typically applies only to borrowers who want to refinance an ARM, interest-only or payment-option type of mortgage, which has a very low interest rate.)
• More information may be found on Freddie Mac's Web site.