— ABOUT RefiNow

RefiNow® is a refinance program offered through Fannie Mae, designed to expand refinancing access for eligible low-to-moderate income homeowners with an existing Fannie Mae-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.

RefiNow® is a rate-and-term refinance program. Its eligibility requirements are specifically calibrated for homeowners whose income falls within defined area median income thresholds, and its program features – including DTI flexibility, appraisal credit, and a defined minimum rate reduction requirement – are designed to ensure that the refinance produces a meaningful and durable financial benefit for every eligible borrower.

Pacific Home Loans offers RefiNow® refinancing for qualified borrowers across all markets where the program is available, subject to Fannie Mae guidelines and lender eligibility confirmation.

→ Mortgage Refinance Programs

— WHO THE PROGRAM SERVES

— PROGRAM FEATURES

Minimum Rate Reduction Requirement
RefiNow® requires that the new interest rate be at least 0.50% lower than the rate on the existing loan. This is a program-level requirement designed to ensure that every RefiNow® refinance produces a defined and measurable improvement in the borrower’s mortgage terms. Transactions that do not achieve this minimum rate reduction are not eligible under the program, regardless of other qualifying factors. This requirement distinguishes RefiNow® from standard conventional refinances and from Freddie Mac’s Refi Possible® program, which does not carry an identical explicit minimum rate threshold.

Rate-and-Term Refinance Structure
RefiNow® is structured as a rate-and-term refinance. Limited cash back at closing of up to $2,000 may be available to assist with closing cost adjustments, subject to program guidelines, but the program is not designed for cash-out purposes. Borrowers seeking to access equity should evaluate other refinance structures.

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 and updated periodically by the Federal Housing Finance Agency. The applicable AMI threshold for a specific property location is confirmed during the pre-approval process using Fannie Mae’s AMI lookup tool. Borrowers in higher-cost markets should confirm the applicable AMI before assuming ineligibility, as the dollar threshold in those markets reflects local income levels and may be higher than anticipated.

Debt-to-Income Flexibility
RefiNow® may accommodate higher allowable debt-to-income ratios than standard conventional refinance guidelines, subject to Fannie Mae underwriting standards and applicable lender overlays. This flexibility can expand eligibility for borrowers whose total monthly debt obligations relative to income would otherwise present a barrier to qualifying under standard refinance criteria.

Loan-to-Value Flexibility
RefiNow® accommodates loan-to-value ratios up to 97%, depending on borrower eligibility and property type. This is a meaningful feature for homeowners with limited equity, as it allows refinancing without the substantial equity position that standard conventional cash-out or high-LTV scenarios might otherwise require.

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 Fannie Mae guidelines. This credit reduces the out-of-pocket cost of the refinance for qualifying transactions and is intended to lower the barrier to accessing the program for income-eligible homeowners.

Fixed-Rate Structure
RefiNow® refinances are available in fixed-rate structures up to the applicable county conforming loan limit. Jumbo loan amounts are not eligible under this program.

— ELIGIBLE PROPERTIES

RefiNow® is available for the following primary residence 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 RefiNow® financing. Investment properties and second homes are not eligible for this program.

Condominium Refinance Considerations
Condominium refinances under RefiNow® require project eligibility confirmation under conventional warrantability standards as part of the underwriting process. HOA financial standing, owner-occupancy ratios, insurance coverage, and project classification are all evaluated. For non-warrantable or resort-designated condominium properties, alternative refinance structures may be appropriate.

→ PrimeResort™ Condo Financing

— AMI ELIGIBILITY

The AMI threshold is among the most important eligibility determinants for RefiNow®, and it varies meaningfully by location. In higher-cost markets – including many of the counties in which Pacific Home Loans operates across California, Colorado, Hawaii, and the Pacific Northwest – the dollar threshold representing 100% of AMI is substantially higher than in lower-cost markets, which can expand effective income eligibility for borrowers in those areas considerably.

AMI limits are updated periodically and are location-specific. The applicable limit for a specific property is confirmed at the time of application using Fannie Mae’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 markets where area median income levels are elevated relative to national averages.

— CONFIRMING FANNIE MAE OWNERSHIP

Eligibility for RefiNow® requires that the existing mortgage be currently owned or securitized by Fannie Mae. This is a threshold requirement – borrowers with Freddie Mac-backed loans evaluate Refi Possible® instead, and borrowers with FHA or VA loans evaluate their respective streamline programs.

Fannie Mae provides a publicly accessible loan lookup tool on its website that allows homeowners to confirm whether their current mortgage is owned by Fannie Mae using their property address. Confirming ownership status is the recommended first step before proceeding with a RefiNow® inquiry, as it determines whether the program is applicable to the specific loan.

→ Fannie Mae Loan Lookup Tool

— COMPARING OPTIONS

RefiNow® vs. Refi Possible® (Freddie Mac)
Refi Possible® is Freddie Mac’s counterpart to RefiNow® — a streamlined, income-based refinance program for eligible low-to-moderate income borrowers. The programs serve the same general purpose and carry broadly similar eligibility structures, but the determining factor between the two is which agency owns the existing loan. A borrower with a Fannie Mae loan evaluates RefiNow®; a borrower with a Freddie Mac loan evaluates Refi Possible®. The programs are not interchangeable. One program-level distinction worth noting: RefiNow® carries an explicit minimum rate reduction requirement of 0.50%, which Refi Possible® addresses through a broader net benefit standard. Both programs require a defined borrower benefit, but the specific threshold differs.

→ Refi Possible® Streamline Refinance

RefiNow® vs. Conventional Rate-and-Term Refinance
A standard conventional rate-and-term refinance does not carry income restrictions and is available for primary residences, second homes, and investment properties across a broad range of property types and loan amounts. It does not offer the DTI flexibility or the appraisal credit feature available through RefiNow®. For borrowers who do not meet the AMI threshold, whose existing loan is not Fannie Mae-owned, or whose loan amount exceeds conforming limits, a standard conventional refinance is the appropriate alternative.

RefiNow® vs. FHA Streamline Refinance
The FHA Streamline Refinance is available to borrowers with an existing FHA-insured mortgage and does not apply to conventional loans. Borrowers with FHA loans evaluate the FHA Streamline program rather than RefiNow®.

→ FHA Streamline Refinance

RefiNow® 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. For eligible veterans who financed through a conventional Fannie Mae-backed mortgage rather than a VA loan, RefiNow® or another conventional refinance structure is the relevant path.

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

— COMMON QUESTIONS