No Cash-out Refinance MortgagesConsolidate higher-rate seconds into one, lower-rate loan

Being competitive in today's mortgage market means offering your customers smart, affordable and convenient mortgage options designed to fit their changing needs. Offer your borrowers a no cash-out refinance mortgage to reduce their interest rate and monthly payment and consolidate higher-rate seconds into one, lower-rate mortgage.

A no cash-out refinance mortgage can lower a borrower's monthly payment, and all related closing costs, financing costs and prepaids/escrows can be rolled into the new loan amount.

There's no seasoning requirement for the mortgage being refinanced. Plus, when you use Loan Prospector automated underwriting technology to evaluate no cash-out refinance mortgages, you'll approve more borrowers and streamline your process with less documentation. Plus, check out our Streamlined Refinance Mortgages for more ways to streamline the refinance process for your borrower.

Product Features

Feature	Requirements
Property Type	1- to 4-unit primary residences, including condos, PUDs and manufactured homes. Second homes 1- to 4-unit investment properties
Eligible Mortgage Products	15-, 20- and 30-year fixed-rate mortgages 5- and 7-year balloon/reset mortgages Most ARMs Super conforming mortgages. See Guide Chapter L33 for requirements.
Maximum LTV Ratios (without secondary financing)	Maximum LTV ratios must comply with Single-Family Seller/Servicer Guide, Section 23.4.1 for Loan Prospector and manually underwritten mortgages For LTV ratios for super conforming mortgages, see Guide Chapter L33.
Down Payment or Closing Costs	All closing costs, financing costs and prepaids can be rolled into the new loan amount.
Eligibility/Underwriting	Loan Prospector Accept or A-minus Non-Loan Prospector New mortgage may include amounts used to pay off junior liens secured by the mortgaged premises that were used in their entirety to acquire the subject property, or must be subordinated or paid off from borrower funds. No seasoning requirement. Minimum Indicator Score of 620 for all mortgages unless otherwise specified in the Guide (Loan Prospector A-minus mortgages exempt) All mortgages must meet the risk class and/or minimum Indicator Score requirements in Guide Exhibit 25A Maximum debt-to-income ratio of 45 percent for manually underwritten mortgages When a Seller originates a cash-out refinance mortgage and the mortgage is refinanced as a no cash-out refinance mortgage, the refinance mortgage is ineligible for sale to Freddie Mac. New loan application required. A borrower may be added or removed from the mortgage. Mortgage payment history and minimum income documentation in accordance with Loan Prospector credit risk/documentation class or Single-Family Seller/Servicer Guide (Guide) requirements. No asset documentation required. Seller must verify reserves if they are entered in Loan Prospector. The Seller must make the determination regarding borrower creditworthiness in accordance with the requirements of the Guide Section 37.4(b).
Execution Options	Servicing-retained Cash* Fixed-rate Guarantor WAC ARM Guarantor MultiLender Swap * See our selling system availability matrix for a list of specific mortgages eligible for sale best efforts or mandatory, servicing released.
Delivery Fees	Postsettlement delivery fees may apply based on the individual characteristics of the mortgage. See Guide Exhibit 19 for details on applicable fees.
Special Delivery Requirements	You must deliver all mortgage data required by Form 11 or Form 13SF, as applicable.
Single-Family Seller/Servicer Guide	Refer to Guide Section 24.5

Download a No Cash-out Refinance Mortgage fact sheet for more details.

Lender Benefits

No cash-out refinance mortgages help you:

Retain your current customer base and increase your origination volume with options to meet the needs of more borrowers.
Improve efficiencies using Loan Prospector technology.
Easily sell more mortgages to Freddie Mac.

Benefits for Your Borrowers

No cash-out refinance mortgages help your borrowers:

Lower their interest rate and payment.
Consolidate higher-rate seconds into one, lower-rate loan.
Eliminate upfront costs by rolling in all related closing costs, financing costs and prepaid items into the new loan amount.
Eliminate mortgage insurance when the new appraisal or inspection report supports a higher value to calculate the new LTV ratio.

For More Information

Call your Freddie Mac representative.
Print out a No Cash-out Refinance Mortgage fact sheet

Training Opportunities

Visit The Learning Center for live and recorded web conferences, access to classroom-style workshops and self-study tools – all designed to help you stay competitive, serve more borrowers and make it easier to do business with us.

The information in this document is not a replacement or substitute for information found in the Single-Family Seller/Servicer Guide and/or the terms of your Master Agreement and/or Master Commitment.