Applications Closing March 2023


Homeowners are advised to take advantage of a new Mortgage Stimulus Program before it’s gone. This is likely to be the largest benefit program American homeowners have seen.

This Stimulus Program is aimed to help average American citizens and stimulate the economy. Utilizing this new service could get homeowners $271 /mo* or $3,252* per year!

Banks do not want homeowners to know about these programs as they can greatly lower mortgage payments through this simple Government-backed solution.

We recommend checking your eligibility as soon as possible before deadlines are announced or requirements are changed.

To see if you live in an active zip code, just click below.


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* – Based on Median Home Equity of Americans aged 45 to 54 of $70,000 (U.S. Census Bureau)

Table of Contents

Enhanced Relief Refinance Program For 2022

Mortgage relief programs are helpful for homeowners that are looking to make lower monthly payments on their mortgage at a lower interest. It is intended as a form of relief for many homeowners and provides them with more attractive means of paying back their home loans.

As the number of homeowners who have underwater mortgages reduces, the value of homes has been steadily increasing across the entire country. As such, you must check whether you qualify for the enhanced relief refinance program for the year.

Not only will this take a huge financial burden off your shoulders, but it will also be a feasible way to get refinancing at a low rate that is more convenient for you.

As a homeowner, there is plenty to benefit from the program. As such, it is essential that you learn as much as possible about it, the requirements and benefits that you can get when you opt to use the program as a means of refinancing your current mortgage.

The Enhanced Relief Refinance Program

Freddie Mac’s Enhanced Relief Refinance program was created to assist borrowers with little equity to refinance at a lower rate and get to pay lower monthly payments.

Homeowners are typically required to have a certain amount of home equity before being considered eligible for refinancing. The equity is built as you continue to make payments on your mortgage and as the value of your home continues to increase.

However, this can be a challenge whenever the value of your home starts to fall or becomes stagnant at once. The value of your home falling means that you will not be able to meet the minimum requirements put in place by lenders for the people looking for refinancing.

Whenever you need to refinance into a lower rate, you first need to check whether or not you qualify with a lender. Your home value might have increased without you knowing it, and this means that you may have already qualified for refinancing.

The maximum loan-to-value ratio acceptable for the Freddie Mac program is 105%, and this is due to the disclosure requirements usually involved in refinancing such a loan. The lender also needs to see how the refinancing will improve your current financial scenario. You should obtain an actual material benefit known as the net tangible benefit. This means that the new loan should be able to have:

  • A lower rate of interest
  • Smaller monthly repayment
  • A different amortization term
  • A switch of the loan rate from an adjustable rate to a fixed rate.

With such features in place, your loan and the monthly mortgage payments will become more affordable. However, it is also crucial to note that you could end up paying a lot more since the loan will have started over.

This means that the time you pay interest will increase, and you will find yourself paying more than you would have anticipated. You should also have a good history of making payments for your mortgage to be bought from the lender by Freddie Mac.

This means that there should be no delinquencies within the last six months, and late payments are not allowed. When you have been making your payments on time, you will be more likely to qualify for the enhanced relief refinance program from Freddie Mac.

If you currently own less than 3% equity in your home, you can qualify for the Freddie Mac program. If you have been working on your current mortgage for at least 15 months and haven’t had any late payments, you are more likely to qualify for the refinancing.

There are usually no restrictions regarding age for the program, and you can be eligible at any age. The program enables homeowners with little equity in their homes to take advantage of the low rates available today, and they are also known to be more flexible at high LTV ratios.

There is no minimum credit score for someone to be eligible for the program, and the existing loan you have will get replaced with new financing.

Freddie Mac’s enhanced relief refinance program(FMERR) is designed to refinance you into a program that will attract a lower interest rate and require you to make lower monthly payments on your mortgage.

It is designed as an enhanced relief program which means that it can be pretty valuable for someone with a home whose value has been decreasing over time.

A house whose value is reducing means that the owner has very little equity to negotiate with, and as such, it becomes a more significant challenge for them to get better financing options.

This is where FMERR comes in with an enhanced relief program that gets you better interest rates and reduces the amounts that you will be required to pay every month. It is even applicable to the homeowners that do not have any equity at all, and the lower rates mean that getting clear on your outstanding debt will be a greater possibility.

Even with a high loan-to-value ratio, you can still qualify for the Freddie Mac enhanced relief refinance program. This comes as a new mortgage that will cover the entire amount you currently owe.

Eligibility Guidelines for the FMERR Program

FMERR was started as a way of helping underwater homeowners and can be a significant way of saving money. However, only recent borrowers can qualify for the programmers, and they have to meet several requirements. These include:

  • Freddie Mac must own the existing mortgage that you have
  • The loan-to-value ratio must be at least 97.01% for a one-unit residence.
  • The loan has to be originated on November 1, 2018, or later.
  • The new loan you intend to take should be at least 15 months apart from the current loan.
  • You should not have delayed any repayment in the past six months.
  • Refinancing could take up to 59 days to close on the loan

The program is also unique because you require very little equity for you to qualify. The loan-to-value ratio is also quite reasonable and means that even when the home’s value has been falling steadily in the past, you can still get refinancing for it.

There is no appraisal needed since there is a Freddie Mac’s Home Value Explorer in place that will determine whether your property is eligible. You can also raise the new loan amount and pay for closing costs for your existing loan when you are getting the new loan.

However, be careful about this since the money will have to be paid back eventually, and with the FMERR loan, this might take a long time, meaning that you might be required to pay more interest.

Borrowers can be removed from the application, but there has to be at least one borrower remaining. The remaining borrower has to prove that they have been making contributions on their own in the last 12 months and can make payments using their income alone.

As long as you are eligible for the refinancing, you will find the FMERR loans quite helpful in taking charge of your current financial scenario. With the lower interest rate and monthly payments, you will find the new loan to be more manageable and easier to handle and manage without any problem.