— ABOUT Refi Possible

Refi Possible® is a refinance program offered through Freddie Mac, designed to expand refinancing access for eligible low-to-moderate income homeowners with an existing Freddie Mac-backed mortgage. The program is structured to help qualifying borrowers reduce their interest rate, lower their monthly payment, and improve the long-term affordability of their mortgage – with underwriting flexibility that accommodates borrowers who may not qualify under standard conventional refinance guidelines.

Refi Possible® is a rate-and-term refinance – it reduces the borrower’s interest rate and monthly payment rather than providing cash out. Its eligibility requirements are specifically designed to serve homeowners whose income falls within defined area median income thresholds, making it a meaningful tool for eligible borrowers in markets where refinancing access under standard programs may be more limited.

Pacific Home Loans offers Refi Possible® refinancing for qualified borrowers across all markets where the program is available, subject to Freddie Mac guidelines and lender eligibility confirmation.

→ Mortgage Refinance Option

— WHO THE PROGRAM SERVES

— Refi Possible QUALIFICATION

Rate-and-Term Refinance Structure
Refi Possible® is a rate-and-term refinance program. It is designed to lower the borrower’s interest rate and monthly principal and interest payment. Limited cash back at closing of up to $250 may be available, subject to program guidelines, but the program is not structured for cash-out purposes.

Income Eligibility
Borrower qualifying income must be at or below 100% of the Area Median Income for the property’s county at the time of application. AMI limits are defined by county, updated periodically, and confirmed through Freddie Mac’s AMI lookup tool. The applicable AMI threshold for a specific property location is confirmed during the pre-approval process.

Loan-to-Value Flexibility
Refi Possible® accommodates loan-to-value ratios up to 97%, depending on borrower eligibility and property type. This is a meaningful feature for homeowners whose property value has not appreciated significantly since purchase, as it allows refinancing without requiring a material equity position that a standard conventional refinance might otherwise demand.

Debt-to-Income Flexibility
The program may allow higher allowable debt-to-income ratios compared to standard conventional refinance guidelines, subject to Freddie Mac underwriting standards and lender overlays. This accommodation can expand eligibility for borrowers whose total monthly obligations relative to income would otherwise limit their refinancing options.

Credit Score
Freddie Mac does not establish a universal minimum credit score at the program level for Refi Possible®. Individual lender guidelines may apply above the Freddie Mac baseline. Borrowers whose credit profile has changed since the origination of the existing mortgage are encouraged to discuss their current profile during the initial consultation.

Appraisal Credit
An appraisal credit of up to $500 may be available for eligible borrowers when an appraisal is required under the program, subject to Freddie Mac guidelines. This credit reduces the out-of-pocket cost of the refinance for qualifying transactions.

Fixed-Rate Structure
Refi Possible® refinances are available in fixed-rate structures up to the applicable county conforming loan limit. The program is not available for jumbo loan amounts.

— ELIGIBLE PROPERTIES

Refi Possible® is available for the following property types, subject to applicable program guidelines:

• 1-unit primary residences
• Single-family homes
• Eligible condominiums meeting conventional project warrantability requirements
• Planned unit developments (PUDs)

Condotel-classified properties are not eligible for Refi Possible® financing. Investment properties and second homes are not eligible for this program.

Condominium Refinance Considerations
For borrowers refinancing a condominium, project eligibility must be confirmed under conventional warrantability standards as part of the underwriting process. Owner-occupancy ratios, HOA financial standing, and project classification all remain relevant to program eligibility for condominium transactions. For non-warrantable or resort-designated condominium properties, alternative refinance structures may be available.

→ PrimeResort™ Condo Financing

— AMI ELIGIBILITY

The AMI threshold is one of the most important eligibility determinants for Refi Possible®, and it varies meaningfully by location. In higher-cost markets – including many of the counties in which Pacific Home Loans operates – the dollar threshold representing 100% of AMI is substantially higher than in lower-cost markets, which expands effective income eligibility for borrowers in those areas.

AMI limits are updated periodically and are location-specific. The applicable limit for a specific property is confirmed at the time of application using Freddie Mac’s official AMI lookup tool. Borrowers should not assume eligibility or ineligibility based on income alone without confirming the applicable AMI for their specific county – particularly in higher-cost markets where AMI thresholds reflect local income levels.

— COMPARING OPTIONS

Understanding where Refi Possible® fits within the broader refinance landscape helps determine whether it is the most appropriate program for a specific borrower’s circumstances.

Refi Possible® vs. RefiNow® (Fannie Mae)
RefiNow® is Fannie Mae’s counterpart to Refi Possible® — a streamlined, income-based refinance program for eligible low-to-moderate income borrowers with an existing Fannie Mae-backed mortgage. The programs are structurally similar and serve the same general purpose, but eligibility for each depends on which agency currently owns the borrower’s existing loan. A borrower with a Freddie Mac loan evaluates Refi Possible®; a borrower with a Fannie Mae loan evaluates RefiNow®. Confirming the current loan’s agency ownership is the first step in determining which program applies.

→ RefiNow® Streamline Refinance

Refi Possible® vs. Conventional Rate-and-Term Refinance
A standard conventional rate-and-term refinance does not carry income restrictions, is available for primary residences, second homes, and investment properties, and accommodates a broader range of property types and loan amounts. It does not offer the same underwriting flexibility on debt-to-income ratios or the appraisal credit feature available through Refi Possible®. For borrowers who do not meet the AMI threshold or whose existing loan is not Freddie Mac-owned, a conventional refinance is the appropriate alternative.

Refi Possible® vs. FHA Streamline Refinance
The FHA Streamline Refinance is available to borrowers with an existing FHA-insured mortgage and operates with reduced income and appraisal documentation requirements. It does not apply to conventional Freddie Mac-backed loans. For borrowers who currently hold an FHA loan rather than a conventional one, the FHA Streamline is the relevant comparison.

→ FHA Streamline Refinance

Refi Possible® vs. VA IRRRL
The VA Interest Rate Reduction Refinance Loan is available exclusively to eligible veterans and service members with an existing VA-backed mortgage. It is not applicable to conventional loans. For eligible veterans who financed through a non-VA conventional mortgage, Refi Possible® or another conventional refinance option is the relevant path.

→ VA Streamline Refinance (IRRRL)
→ Full Mortgage Refinance Options

— COMMON QUESTIONS