Fannie Mae issued an update to Lender Letter LL-2021-010 to expand refinance eligibility for the RefiNow option. Per the updated Lender Letter, Fannie Mae:
- Increased the borrower income limit to allow up to 100% of the applicable Area Median Income (AMI) limit (previously 80% of the applicable AMI);
- Eliminated the maximum loan seasoning requirement of 10 years;
- Removed the $5,000 cap on the financing of closing costs, prepaid items, and points;
- Allowed any reduction to the monthly mortgage payment instead of requiring a minimum reduction of $50; and
- Removed the Adverse Market Refinance Fee.
The update to Lender Letter LL-2021-10 is effective immediately.
Click to view the Fannie Mae Lender Letter LL-2021-010: https://www.tenaco.com/wp-content/uploads/2021/10/Fannie-Mae-Update-to-Lender-Letter-LL-2021-10-10-20-21.pdf
