July 30, 2025
7 minutes
Let’s face it: Refinancing sounds great in theory, with lower rates, reduced monthly payments, but if your income doesn’t meet typical lender standards, it can feel like you’re locked out. That’s where RefiNow and Refi Possible come in.
Both programs were designed to help homeowners with modest incomes refinance affordably and responsibly, even if their credit or equity isn’t perfect.
In this guide, we’ll break down each program, how they work, and how to decide which one’s right for you.
Key Takeaways:
- RefiNow and Refi Possible are government-backed refinance programs for low- to moderate-income borrowers.
- You may qualify even with lower credit scores and higher LTV ratios.
- These programs help reduce monthly payments and interest costs.
- Each has slightly different eligibility criteria; find out which one suits you.
- Ideal for homeowners who missed out on refinancing when rates were low.
What Are RefiNow and Refi Possible?
RefiNow is a Fannie Mae initiative. Refi Possible is its Freddie Mac counterpart. Both aim to help lower-income borrowers access the benefits of refinancing.
Core Benefits:
- Reduced Interest Rates: Lenders must offer at least a 50-basis-point rate reduction.
- Limited Fees: Upfront costs are capped, and some may be waived.
- No Appraisal in Many Cases: Streamlined process for qualifying applicants.
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Shared Eligibility Criteria:
- Your income must be at or below 100% of your area’s median income (AMI).
- You must have a current Fannie Mae- or Freddie Mac-owned loan.
- You must have no missed mortgage payments in the past six months.
Key Differences Between the Two
| Feature | RefiNow (Fannie Mae) | Refi Possible (Freddie Mac) |
|---|---|---|
| Credit Score Requirement | 620+ | No minimum, but underwriter discretion |
| Loan-to-Value (LTV) | Up to 97% | Up to 97% |
| Debt-to-Income Ratio | Higher ratios allowed | DTI flexibility varies |
| Mortgage Insurance | Not affected | Not affected |
How to Apply (Step-by-Step)
- Confirm Ownership: Use the lookup tools linked above.
- Check Income Eligibility: Use the AMI tool on Fannie Mae’s site.
- Contact a Trusted Lender: Platforms like reAlpha Mortgage can connect you with licensed experts who specialize in RefiNow and Refi Possible programs.
- Submit Documentation: You’ll need proof of income, current mortgage statements, and credit authorization.
- Review Offers: Ensure the interest rate reduction meets program standards.
Compliance Disclosures
- This content is for informational purposes only and does not constitute financial advice.
- Mortgage availability and terms are subject to change.
- Eligibility for RefiNow or Refi Possible depends on the borrower's profile and underwriting.
- reAlpha Mortgage, NMLS #1743790, is a licensed mortgage broker offering access to refinance products through a trusted network of third-party lenders.
- reAlpha is a homebuying platform designed to help buyers save money by offering a substantial portion of the buyer agent’s commission back when agent, mortgage, and title services are bundled together. reAlpha itself does not act as a mortgage lender.
Conclusion: Your Next Move
Buying a home is a big decision - and having the right information puts you ahead. But the real advantage comes from pairing smart research with a smarter way to buy.
When you use a reAlpha real estate company, you can be eligible to receive up to 1% of the home purchase price back as a credit at closing. Add reAlpha Mortgage, and that rebate can increase to up to 1.5% back, helping offset closing costs and keep more money in your pocket when it matters most.
The rebate is simple, transparent, and applied directly at closing - no complicated hoops, no delayed payouts. Just real savings tied to using a fully integrated homebuying experience.
See how much you could save:
- Check your eligibility
- Explore homes that fit your budget today.
- Your next move could come with thousands back at closing.
Estimate your savings → Rebate Calculator
Ready to refinance smarter? Let reAlpha Mortgage guide you every step of the way.
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FAQs
What’s the difference between RefiNow and Refi Possible?
RefiNow is Fannie Mae’s low-income refinance option, while Refi Possible is Freddie Mac’s. They share similar goals but have slightly different underwriting guidelines.
Can I qualify with a low credit score?
Yes, both programs are more flexible than traditional refinancing. Refi Possible may accept even lower scores at the lender's discretion.
Do I need to pay for an appraisal?
Not necessarily. If you qualify under either program, appraisal fees may be waived.
Are these programs available in all states?
Yes, but you must meet the income and loan ownership criteria.
Is there a catch?
No catch, just eligibility rules. Make sure your mortgage is owned by Fannie or Freddie and your income fits the local AMI threshold.
How long does the process take?
In most cases, 3–6 weeks from application to closing, depending on your documentation and lender.
Need help deciding? Reach out to realpha or reAlpha Mortgage today to learn more.
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Article by
Rocky Billore is a mortgage industry leader and Chief Sales Officer with over two decades of experience across residential and commercial lending. Since entering the industry in 2004, he has been directly involved in funding more than $1.4 billion in loans. A recognized expert in VA and government lending, Rocky combines deep program knowledge with a data driven, relationship-first leadership style. His work focuses on building scalable sales organizations, developing high performing teams, and aligning technology with real world lending outcomes to improve the homeownership experience.