Although eligibility requirements vary by lender and program, some common qualifications include the house being worth more than the amount to be refinanced, having a strong credit score and having a debt-to-income ratio that shows the refinance payment would be affordable to the borrower, notes Lending Tree. Some programs such as the Home Affordable Refinance Program, or HARP, requires that Freddie Mac or Fannie Mae is connected to the loan in some way.
There may also be a requirement that the borrower had not refinanced the mortgage already under the same program, notes MakingHomeAffordable.gov. The borrower should also be up to date on mortgage payments. Financing programs may also require a new appraisal and inspection of the home to determine eligibility, suggests FreddieMac.