Freddie Mac Single-Family Seller/Servicer Guide Section 4301.1 — Refinance Mortgages

Freddie Mac Single-Family Seller/Servicer Guide Section 4301.1 — Refinance Mortgages

4301.1: Refinance Mortgages (02/04/26) Freddie Mac will purchase refinance Mortgages under the terms of the Purchase Documents including this chapter. A refinance Mortgage is either: ■ A Mortgage, the proceeds of which are used to pay off an existing Mortgage or Mortgages secured by the Mortgaged Premises with the cancelation of the existing promissory note(s) and the execution of a new promissory note and Security Instrument, or ■ A Mortgage secured by Mortgaged Premises previously owned free and clear by the Borrower Freddie Mac purchases the following types of refinance Mortgages: ■ A “no cash-out” refinance, including: ❑ Freddie Mac Enhanced Relief Refinance® Mortgages ❑ Refi Possible® Mortgages ■ A cash-out refinance ■ A special purpose cash-out refinance Note: A Mortgage the proceeds of which are used to pay off an Interim Construction Financing must meet requirements of Chapter 4602 for Construction to Permanent Mortgages and Renovation Mortgages, including, but not limited to, how the transaction type (purchase or refinance) is determined. 4301.2: Borrower requirements for refinance Mortgages (12/05/25) When an existing Mortgage will be satisfied through a refinance transaction, at least one Borrower on the refinance Mortgage must be a Borrower on the Mortgage being refinanced as documented in the Mortgage file. Exceptions: Freddie Mac Single-Family Seller/Servicer Guide Chapter 4301 As of 02/04/26 Page 4301-2 When no Borrower on the refinance Mortgage is a Borrower on the Mortgage being refinanced, one of the following must apply and be documented in the Mortgage file: ■ At least one Borrower on the refinance Mortgage held title to and resided in the Mortgaged Premises as a Primary Residence and has been making timely Mortgage payments, including the payments for any secondary financing, for the most recent 12-month period ■ At least one Borrower on the refinance Mortgage inherited or was legally awarded the Mortgaged Premises in accordance with a final judgment or decision from a legal body (e.g., court, jury, judge or arbitrator) such as in a case of divorce, separation or dissolution of a domestic partnership Note: A Living Trust may be made irrevocable by a Settlor’s death. To be an eligible Borrower at the time of the refinance transaction, the Borrower must continue to be a Living Trust that meets Freddie Mac’s revocability and, as applicable, other eligibility requirements.

Source: Freddie Mac Single-Family Seller/Servicer Guide Section 4301.1 — Refinance Mortgages · source URL · snapshot 5869ee9e606cd4ae