RefiNow™ vs Refi Possible®: Which Refinance Option is Right for You?

Refinancing can feel out of reach when you’re working with a tight budget, rising expenses, or a credit profile that could use a bit of work. Many homeowners want to feel the relief of a lower monthly payment on their mortgage, but they aren’t sure whether they’ll qualify for refinancing, if refinancing will help them, or even where to start.  

Well, depending on your circumstances, it may be worth starting by looking into RefiNow™ by Fannie Mae® or Refi Possible® by Freddie Mac®. Both programs were designed with the goal of providing new refinancing options for low-income borrowers.  

While the names sound similar, the programs aren’t entirely identical. Each has its own guidelines, and understanding those differences can help you feel more confident as you explore your options. In this article, we’ll walk through what each program offers, how they compare, and what to consider as you decide which one may be a fit for your situation.

What is RefiNow™ (Fannie Mae)?

Fannie Mae’s RefiNow™ is a refinance option designed for homeowners whose current mortgage is owned or securitized by Fannie Mae. The goal is to make refinancing more accessible for lower-income borrowers by streamlining certain requirements and lowering some of the upfront barriers.  

To be eligible, the current loan must be a conventional mortgage owned or securitized by Fannie Mae. Additionally: 

• The home must also be a one-unit primary residence.  

• The borrower’s income must be at or below 100% of the Area Median Income (AMI) for the property’s location.  

• The refinance must result in a reduction in interest rate of at least 50 basis points and a reduction in the monthly payment covering principal, interest and mortgage insurance (if applicable).  

Other important details include the fact that the borrower’s debt-to-income ratio (DTI) for the new loan may be up to 65%. The loan-to-value ratio (LTV) may go up to 97% in some cases. Further, though the program does not have a credit score minimum, lenders are likely to have their own minimums for you to be aware of. Also, payment-history requirements apply:  

• No missed payments in the past six months 

• No more than one 30-day delinquency in months 7–12. 

In short, RefiNow™ offers an opportunity for eligible, lower-income homeowners to refinance when they may have otherwise faced obstacles.

What is Refi Possible® (Freddie Mac)?

The Freddie Mac Refi Possible® program is designed to give eligible homeowners, especially those with lower to moderate income levels, a path to refinancing their existing mortgage into a potentially lower-cost loan. A lot of the eligibility requirements for this program will sound familiar.  

To be eligible for Refi Possible®, the current loan must be a first-lien conventional mortgage that is owned or securitized by Freddie Mac, and the property must be a one-unit primary residence. The total qualifying income for borrowers must be at or below 100% of the Area Median Income (AMI) for the location.  

The program also requires the refinance to deliver a net tangible benefit to the borrower, specifically, the new mortgage must reduce the interest rate by at least 50 basis points and reduce the borrower’s monthly payment.   

As with RefiNow™, eligibility highlights include a debt-to-income (DTI) ratio threshold up to 65%. The loan-to-value (LTV) limit for a one-unit property is generally up to 97%, with a lower limit (95%) for manufactured homes and mortgages with a non-occupying borrower.  

In short, Refi Possible®, like its Fannie Mae counterpart, is a refinance option built to reduce some traditional qualification barriers and to help more homeowners benefit from refinancing by taking advantage of available interest-rate reductions or payment savings.

RefiNow™ vs Refi Possible®: Side-by-Side Comparison

Fannie Mae’s RefiNow™ and Freddie Mac’s Refi Possible® effectively share the same mission: to create more accessible refinancing options for eligible lower-income homeowners. Both programs require that the borrower’s existing mortgage be owned or securitized by their respective agency, and both are designed to create a clear borrower benefit through a lower interest rate and reduced monthly payment.  

Even so, there are differences between the two programs that can influence which option may be a better fit. Here’s a simple breakdown of some key similarities. 

• Both require the current mortgage to be backed by their respective agency (Fannie Mae for RefiNow™, Freddie Mac for Refi Possible®). 

• Both target borrowers with income at or below 100% of AMI. 

• Both allow DTI ratios up to 65%.  

• Both require the refinance to produce a meaningful benefit, including at least a 50-basis-point rate reduction and a lower monthly payment. 

• Both focus on supporting long-term, sustainable homeownership by easing some traditional refinance barriers. 

Ultimately, the biggest difference between the two programs is that RefiNow™ only works with Fannie Mae-owned or securitized loans, and Refi Possible® with Freddie Mac. Beyond that, it may be best to talk to your lender about any unique features in underwriting to be aware of.

Final Thoughts

RefiNow™ and Refi Possible® were created to open up a refinance option for lower-income borrowers to potentially reduce their monthly housing costs. Knowing which agency holds your mortgage, how your income aligns with local limits, and what kind of benefit the refinance must provide can help you make sense of whether these options are a fit for you. If you’ve felt stuck because you weren’t sure you’d qualify for a traditional refinance, these options may offer a more accessible path forward.