What are the minimum eligibility criteria for a Home Affordable Refinance?
The loan is owned or guaranteed by Fannie Mae or Freddie Mac. The property is a one- to four-unit home. The borrower is current on the mortgage payments. “Current” means the borrower has not been more than 30 days late in the last 12 months or, if the loan is less than 12 months old, the borrower has never missed a payment. The unpaid principal balance of the first lien mortgage does not exceed 125 percent of the current market value of the property. (For example, if the property is worth $200,000, the borrower must owe $250,000 or less on that first lien mortgage). The borrower has a reasonable ability to pay the new mortgage payment. The refinance improves the long-term affordability or stability of the loan.
