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Rate & Term

  • Primary / Second / Investment
  • Traditional
  • 620 Min FICO
  • 97% Max LTV

The Conventional Rate & Term Refinance—also called a Limited Cash-Out Refinance—is designed for homeowners who want to improve loan terms without taking equity out of the property. It allows refinancing an existing mortgage to reduce interest rate, change the term, or remove mortgage insurance, while paying off only purchase-money liens and standard closing costs.

 

This program is ideal for borrowers who:

  • Want to lower their monthly mortgage payment or reduce their interest rate.
  • Need to remove private mortgage insurance (PMI) once equity has increased.
  • Have an existing conventional or FHA loan and want to refinance into a standard conventional loan.
  • Are not seeking cash out from home equity, only better loan terms.

Occupancy Type

Property Type

Credit Score

Max LTV/CLTV

Notes

Primary Residence

SFR / Condo

620+

97%

Current loan must be owned by Fannie Mae if LTV > 95%. Manufactured homes not eligible above 95%.

Primary Residence

2-4 units

620+

95%

Borrower must occupy one unit.

Second Home

1 Unit / Condo

620+

90%

Must be suitable for year-round occupancy and not subject to rental agreements.

Investment Property

1-4 Units / Condo

620+

75%

Eligible for rate & term refinance only; no cash-out allowed.

Manufactured Home

1 Unit

620+

95%

Primary residence only. Multi-wide homes only. Single-wide limited to primary residence.

Occupancy Requirement

Primary residence


If owner-occupied, at least one borrower must intend to occupy the home as their primary residence within 60 days of closing.

Investment


If non-owner-occupied, the borrower(s) can't occupy the home; it must be rented or held for investment, with rental income or reserves meeting Fannie Mae guidelines.

Residency Eligibility

Eligible


  • Valid SSN — must have a valid Social Security Number (SSN).
  • Permanent residents — must provide a valid, unexpired Green Card.
  • Non-permanent residents — eligible with valid visa or Employment Authorization Document (EAD).
  • Individuals with work permits are eligible (must show valid documentation per Freddie Mac).

Ineligible


  • ITIN borrowers are ineligible.
  • Foreign nationals are ineligible.
  • Borrowers without a social security number, or with a number that cannot be validated through the SSA are ineligible.
  • Borrowers with diplomatic immunity are ineligible.
  • Borrowers previously convicted of mortgage fraud are ineligible.

Income Consistency Requirements

Employment History


  • Two years of employment history required with the same employer or with different employers in the same line of work,
  • One year may be acceptable if the borrower has at least five years of prior experience in the same line of work or holds a professional license in that field,
  • Education or training may be used to fill gaps in history,
  • If on temporary disability, income used will be the lower of the disability pay or the regular employment income.

Notes


  • Frequent job changes are allowed if they are within the same line of work and the income is stable or increasing, provided this is supported by documentation,
  • Gaps over 6 months require explanation + current 6 months continuous employment,
  • Education and training must be documented with transcripts, diploma, certificate, professional license, or official school/training program documentation,
  • An employer’s letter is required and must confirm the return-to-work date. If the return-to-work date is before the first mortgage payment, use regular income; if the return-to-work date is after the first mortgage payment, use the lower of disability income or regular income.

Income Type

Requirement

Documentation

Wage Earner

2 years stable employment history (gaps allowed if explained). Must show likelihood of continuance.

30 days paystubs + 2 years W-2s; VOE if required.

Self-Employed

2 years of self-employment required (1 year possible with ≥5 years prior work history in same field or relevant professional license.). Must demonstrate stable or increasing income.

2 years tax returns; YTD P&L; business bank statements if requested.

Part Time

2-year history required; must be likely to continue.

W-2s, paystubs, VOE verifying hours and history.

Seasonal

2-year history required; must be likely to continue.

W-2s, paystubs, VOE or employer letter confirming rehire pattern.

Social Security, Disability, and Retirement Income

Must be expected to continue ≥ 3 years.

Award/benefit letter (SSA, pension, disability) + proof of receipt (bank statements, 1099s, or deposits).

Alimony / Child Support

Must be court-ordered or written agreement; ≥ 3 years continuance.

Divorce decree, separation agreement, or order + 6 months proof of receipt.

Loan Amounts

Minimum Loan Amount


$50,000 minimum (case-by-case exceptions possible).

Maximum Loan Limits


Must meet FHFA conforming loan limit values.

Non-Occupant Co-Borrowers

Eligibility


  • Allowed on primary residence refinances only,
  • The non-occupant co-borrower must be on title and on the loan,
  • Their income, assets, and liabilities are fully included in the borrower’s qualification (DTI, reserves, etc.).

LTV Limits & Exceptions


  • Maximum 95% LTV/CLTV when a non-occupant co-borrower is used.
  • If LTV exceeds 95%, all borrowers must occupy the property.
  • Not permitted on second homes or investment properties.

Property Types

Eligible


  • SFRs (Single-Family Residences),
  • 2–4 Units (must occupy one unit),
  • PUDs (attached/detached),
  • Condominium (attached/detached), Fannie Mae warrantable,
  • Modular/prefabricated properties 1-unit only,
  • Manufactured Homes (on permanent foundation, at least 12 feet wide and have a minimum 400 square feet of gross living area.).

Ineligible


  • Non-Warrantable Condos,
  • Condo Hotels or Motels (projects managed or operated as hotel/motel, hotel/motel conversions),
  • Unique properties,
  • Agricultural-type properties, farms, orchards, ranches,
  • Properties zoned for agricultural use
  • Commercial property,
  • Vacant land or land development properties,
  • House Boats, boat slips, timeshares and other forms of property that are not real estates,
  • Manufactured home located in age restricted community,
  • A manufactured home moved from another site (i.e., previously installed at another site) Home must have been delivered directly from the manufacturer/dealer to its current site.

Disclaimer – This matrix was published on 09/20/2025. Program guidelines may have changed since then. Please contact Alexis to confirm the most current requirements. For complete details, refer to the Partner Matrices PDF or reach out directly to Alexis for program-specific guidance.

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