Low-Income Refinance Program

Closing cost assistance for greater affordability
As a homeowner, you’ve likely considered if refinancing is worth it. A lower mortgage rate can give you big savings on your monthly mortgage payment — but what about closing costs?
A low-income refinance (LIR) program can help.
As part of its mission established by the Federal Housing Finance Agency (FHFA) to increase opportunities for affordable homeownership, this LIR program provides low-to-moderate income borrowers with $2,500 in closing cost assistance to obtain the benefits of a refinance.
Refinancing through the LIR program is a smart option designed for homeowners like you to keep more money in your pocket.
Program advantages
The LIR program makes refinancing a more affordable option for low-to-moderate-income borrowers. Some homeowners who could currently benefit from refinancing to a lower rate or reduced mortgage term simply don’t do it because of the initial barrier of closing costs. An LIR addresses that with $2,500 in closing cost assistance.
But how can you win with an LIR? Let’s explore two examples.
First, let’s say you can refinance and reduce your mortgage rate by .50%. That would decrease your monthly mortgage payment by a considerable amount. Plus, with an LIR, you can get $2,500 toward closing costs, maximizing your savings even more.
Second, maybe you aren’t worried about your rate but would like to pay off your mortgage sooner. If a refinance would lower your mortgage terms by 5 years and the new home loan would have a term of less than 15 years, you can start saving now with an LIR and plan to live without a mortgage payment a few years sooner!
Low-income refinance eligibility
Eligible loans
LIR loans must meet the following criteria:
- Income must be ≤80% of the area median income (AMI)
- Existing home loan must be at least six full months from the first payment due date
- One-unit primary residences only
- No current delinquency
Target markets
To qualify for this LIR program, you must live in one of the following metropolitan
- Atlanta-Sandy Springs-Alpharetta, GA
- Baltimore-Columbia-Towson, MD
- Charlotte-Concord-Gastonia, NC-SC
- Chicago-Naperville-Elgin, IL-IN-WI
- Cincinnati, OH-KY-IN
- Cleveland-Elyria, OH
- Columbus, OH
- Dallas-Fort Worth-Arlington, TX
- Detroit-Warren-Dearborn, MI
- Houston-The Woodlands-Sugar Land, TX
- Indianapolis-Carmel-Anderson, IN
- Kansas City, MO-KS
- Miami-Fort Lauderdale-Pompano Beach, FL
- Minneapolis-St. Paul-Bloomington, MN-WI
- New York-Newark-Jersey City, NY-NJ-PA
- Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
- Phoenix-Mesa-Chandler, AZ
- Pittsburgh, PA
- Louis, MO-IL
- Washington-Arlington-Alexandria, DC-VA-MD-WV
Borrower benefit
Net tangible benefits required to refinance are:
- Interest rate reduced by at least .50% and a reduction in monthly principal and interest payments
- Remaining term of the existing mortgage is reduced by at least 5 years with a new term of no more than 15 years
Home education counseling
1:1 counseling by a HUD-certified counselor is not required. However, it can be included if desired.
Low-income refinance FAQs
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Connect with a CrossCountry Mortgage loan officer. Once we have some basic information, we’ll discuss your eligibility for the low-income refinance program and help you with the next steps.
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Because eligibility for the low-income refinance program depends on where you live when you apply and the potential benefits of refinancing, the best way to find out if you qualify is to get started with a CCM loan officer.
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No. This program does not provide closing cost assistance as a loan and therefore does not need to be repaid.
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The low-income refinance program will refinance your current home loan into a Freddie Mac Home Possible® mortgage. This can be a fixed or adjustable-rate (5/6, 7/6 or 10/6) refinance. A CCM loan officer can help you walk through the variances and limitations of a Home Possible® mortgage for the LIR program.