Federal Home Loan Mortgage Corp (Freddie Mac) Open Access Relief Refinance
- Unlimited Loan-to-Value (LTV) - Your refinance request cannot be denied because you owe more than your property is worth, no matter how far upside down you are.
- Unlimited Debt-to-Income Ratio (DTIR) - Your refinance request cannot be denied due to insufficient income, even if you cannot prove enough income to make the current loan payment.
- All residential property types accepted - The property being refinanced need not be your primary residence, as long as it is a residential property consisting of 4-units or less (i.e., single family home, condo/townhouse, duplex, triplex, 4-unit or 2-4 separate homes on a single lot).
- All Credit Accepted - Your refinance request cannot be denied due to a bankruptcy, short sale or foreclosure. It does not matter when such problems occurred. There are no seasoning requirements. Late mortgage payments are also acceptable, as long as the payments are current at the time of application and have been current for at least six months.
- Subordinate Financing Accepted - No cash out is allowed under this program, nor may a 2nd loan be combined with a 1st. However, if a there is a 2nd mortgage or equity line of credit on the property, it may be subordinated to the new Freddie Mac Open Access Relief refinance of the 1st mortgage. (Subordination is the legal process whereby a 2nd mortgage or equity line is allowed to be left in place after the 1st mortgage is refinanced.)
- No Mortgage Insurance (MI) - If your current loan does not have mortgage insurance, it will not be required with the new loan. It does not matter if your loan balance is greater than 80% of the current value of the property
- No Reserve Requirements - You will not be required to have any savings or assets at the close of the loan.
- Borrowers may be removed or added - As long as at least one of the original borrowers remains on the loan and on title, other borrowers may be removed and/or added. New borrowers need not occupy the property.
- No Maximum Number of Financed Properties - Your refinance request will not be denied due to having multiple properties with existing mortgages.