This was just announced today. There are several moving parts and details yet to be determined. I will keep you posted as more information and the program becomes available formally.
Expanded Refinance Options
A day late and almost a dollar short, Fannie Mae and Freddie Mac both opened up the refinance opportunities for homeowners who have little to no equity in their home. Previous refinance options limited the new mortgage balance to no more than 105% of what the home is worth. New options will now allow you to borrow up to 125% of what the home is worth. The new loan cannot be used to payoff or refinance any existing second mortgage or home equity loans. But for borrowers who had little to nothing down, this may now open the window of opportunity to refinance.
