Fannie Mae Announces Updates to Cash-Out Refinance Eligibility

Today, Fannie Mae updated its eligibility policy for cash-out refinance transactions to require that any existing first mortgage being paid off through the transaction be at least 12 months old as measured from the note date of the existing loan to the note date of the new loan.

Lenders are encouraged to implement these changes immediately but must do so for all cash-out refinances with note dates on and after April 1, 2023.

For details, please review the Selling Guide Announcement (SEL-2023-01).

For questions, please contact the Fannie Mae Investor Help Line at 1-800-232-6643, Option 3 or by e-mail.