Fannie Mae RefiNow™ is a loan option designed to make refinancing easier and less costly for existing Fannie Mae borrowers. The program isn’t open to everyone — those with above-average incomes in their area are excluded — but for those who qualify, it offers meaningful advantages: more flexible credit and DTI requirements than standard Fannie refinances, and a $500 appraisal credit from Fannie Mae.
- To qualify for RefiNow™, your annual income must be at or below the area median income (AMI) where you live.
- This is not a cash-out refinance — the maximum cash back at closing is $250.
- RefiNow™ has no minimum credit score and allows DTI ratios up to 65% — higher than most other refinance programs.
- Your existing mortgage must be owned by Fannie Mae, and you must reduce your rate by at least 0.5%.
RefiNow™: The Basics
Fannie Mae RefiNow™ was designed when mortgage rates were much lower, with the goal of making refinancing more accessible to borrowers on modest or average incomes who faced steep closing costs or strict qualifying requirements.
Today, with rates significantly higher than they were when the program launched, opportunities to qualify are more limited. Fannie Mae requires that your new rate be at least 0.5% (50 basis points) lower than your existing rate. At the time of writing, that means only borrowers with loans originated during higher-rate periods are likely to be eligible.
Source: Federal Reserve Bank of St. Louis
If and when rates fall again, RefiNow™ could be a strong option for many borrowers who currently don’t qualify.
RefiNow™: Key Benefits
RefiNow™ offers two core advantages over standard Fannie Mae refinances:
- Lower costs. If an appraisal is required, Fannie Mae provides a $500 credit toward closing costs, regardless of the appraiser’s actual fee.
- More accessible eligibility. The program imposes no minimum credit score — a significant advantage for borrowers with damaged credit. And DTI limits are considerably more generous than most other programs.
Higher DTI Allowances
Your debt-to-income (DTI) ratio is calculated by dividing your total monthly debt payments by your gross monthly income. Most refinance programs cap DTI at 43–50%, and even FHA — one of the more flexible options — caps at 57%.
RefiNow™ allows DTIs up to 65%, which opens the door for borrowers who would be disqualified elsewhere.
Lender Overlays
Fannie Mae sets the program guidelines, but individual lenders can impose their own, stricter standards. Some lenders may not approve applications with very low credit scores or very high DTIs, even if they technically meet program requirements. Shopping multiple lenders is especially important for RefiNow™ applicants.
RefiNow™ Eligibility Requirements
To qualify, you must have an existing Fannie Mae loan and an income at or below the area median income (AMI) where you live. Fannie provides two tools to verify both:
- Fannie Mae Loan Lookup Tool — confirms whether your loan is owned by Fannie Mae
- Fannie Mae Area Median Income Lookup Tool — shows your area’s AMI so you can compare it to your income
If there are multiple borrowers on the loan, Fannie Mae requires the combined income of all borrowers to be at or below 100% of the AMI.
Full Eligibility Checklist
- Loan must be secured by a single-unit primary residence (not multi-unit)
- Borrower’s income must be at or below 100% of the area median income
- Borrower must be current on the mortgage with no missed payments in the past six months, and no more than one missed payment in the past 12 months
- New loan amount must be 97% or less of the home’s appraised value
- DTI ratio cannot exceed 65%
- New interest rate must be at least 0.5% (50 basis points) lower than the existing rate
- New monthly payment (including principal, interest, and any mortgage insurance) must be lower than the current payment
When to Consider RefiNow™
RefiNow™ is designed for borrowers on modest or average incomes who want to reduce their rate and monthly payment. The program won’t approve you unless you achieve both — the 0.5% minimum rate reduction and a lower monthly payment are requirements, not suggestions.
That said, qualifying for the program doesn’t automatically mean refinancing makes sense. You’ll want to calculate your breakeven point — how long it will take for your monthly savings to recover your closing costs. If you’re likely to move before reaching that point, refinancing may not be worth it. Some experts recommend waiting until you can reduce your rate by at least 1% for the savings to be meaningful.
Use our refinance breakeven calculator to model your specific scenario.
How we source rates and rate trends
Rates based on market averages as of Aug 10, 2026.Product Rate APR 15-year Fixed Refinance 5.85% 5.91% 30-year Fixed Refinance 6.78% 6.82%
How to Get a RefiNow™ Loan
- Confirm your loan is owned by Fannie Mae using the lookup tool above
- Verify your income is at or below your area’s AMI using the AMI lookup tool
- Check that current mortgage rates are at least 0.5% below your existing rate
- Confirm you meet the other eligibility criteria listed above
- Request loan estimates from at least three Fannie-approved lenders to compare rates and terms
- Apply with the lender offering the best overall deal
- Submit all required documentation to support your application
- Complete the appraisal and underwriting process
- Close on your new loan and begin making lower monthly payments
Similar Options
If your mortgage isn’t owned by Fannie Mae, check whether it’s owned by Freddie Mac. Freddie’s Refi Possible® program offers similar benefits and may be a good fit.
You may also want to explore FHA, VA, or USDA loans if you’re eligible — each has its own set of flexible qualification guidelines that may work in your favor.
If you’re concerned about making payments and worried about foreclosure, talk to your lender about a loan modification. It’s designed to help borrowers reduce their monthly payment when refinancing isn’t an option.
Is RefiNow™ Right for You?
RefiNow™ can be a valuable option for borrowers on average or below-average incomes who need more flexibility than standard refinance programs allow. With no minimum credit score, a 65% DTI cap, and a built-in appraisal credit, the program removes barriers that would otherwise prevent many borrowers from refinancing.
Whether or not you can take advantage of it today depends on current rates — but it’s worth keeping in mind for when market conditions shift. If you think you might qualify, start your refinance application with Refi.com to explore your options.
Fact-checked by Tim Lucas
