Freddie Mac Refi Possible 2026: Low-Income Refinance Program Guidelines and Appraisal Credit

Freddie Mac Refi Possible is a refinance program for existing Freddie Mac borrowers at or below 80% of area median income. It is designed to give low-to-moderate income homeowners access to rate improvements without being priced out by appraisal costs or strict overlays. For qualifying borrowers, it is one of the most accessible refi paths in the market.

Core Eligibility Requirements

• ✦Borrower income at or below 80% of AMI for the property location
• ✦Existing loan must be a Freddie Mac-owned or guaranteed first mortgage
• ✦Maximum LTV: 97% for single-family primary residence
• ✦Rate must be reduced by at least 0.5% (combined rate and fee test applies)
• ✦No minimum FICO requirement from Freddie Mac; lender overlays typically require 620+
• ✦Primary residence only, no investment or second home

Appraisal Credit

Freddie Mac provides a $500 appraisal reimbursement credit to lenders for every Refi Possible loan delivered. The lender is required to pass this credit on to the borrower at or before closing. This reduces out-of-pocket costs significantly for lower-income borrowers for whom a $500 credit is meaningful relative to total closing costs.

How to Identify a Freddie Mac Loan

The borrower's existing loan servicer can confirm whether the loan is Freddie Mac-owned. Borrowers can also check at the Freddie Mac mortgage lookup tool using their address. Agency servicing transfers do not change the investor; if the original lender sold to Freddie Mac, it remains Freddie Mac regardless of who services it today.