Freddie Mac Guidelines: Discontinued Relief Refinance Program

What This Deleted Guideline Means for Today's Borrowers

You likely found this guideline reference while researching refinance options, but this specific section no longer exists. Fannie Mae deleted Section 4303.6 in October 2019, which means any provisions it contained for Freddie Mac Relief Refinance Mortgages with Open Access are no longer valid.

This creates confusion for borrowers who find outdated information online or in older mortgage documents. The deletion doesn't mean refinance relief programs disappeared entirely. Instead, Fannie Mae consolidated and updated their refinance guidelines under different sections of their guide.

If you're looking for refinance relief options today, you need to focus on current Fannie Mae programs. The High LTV Refinance Option allows borrowers to refinance even when they owe more than their home is worth, up to 125% loan-to-value ratio in some cases.

Why Fannie Mae Deleted This Section

Fannie Mae regularly updates and streamlines their guidelines to eliminate redundancy and outdated provisions. The Relief Refinance Mortgage Open Access program served its purpose during a specific period but became unnecessary as market conditions changed and better programs emerged.

The deletion also reflects Fannie Mae's effort to simplify their guide structure. Rather than maintaining separate sections for discontinued programs, they consolidate active refinance options under unified guidelines that are easier for lenders to follow.

This housekeeping approach protects both lenders and borrowers from accidentally applying outdated rules to new loans. When a section gets deleted, it cannot be referenced or used for current mortgage applications.

Current Refinance Options to Consider Instead

Since the deleted guideline dealt with refinance relief, you're probably looking for ways to refinance when you're underwater on your mortgage or facing financial hardship. Several current Fannie Mae programs might help.

The High LTV Refinance Option, covered under different guideline sections, allows qualified borrowers to refinance up to 97% loan-to-value for rate-and-term refinances. Some borrowers can even go up to 125% LTV under specific circumstances.

For borrowers current on their payments but unable to refinance due to declining home values, this program provides an alternative path. You must have made your last 12 mortgage payments on time, with no more than one 30-day late payment in that period.

Cash-out refinances follow different rules and typically cap at lower LTV ratios. The exact requirements depend on your credit score, debt-to-income ratio, and loan purpose.

Documents You'll Need for Current Refinance Programs

Since you can't use the deleted guideline, you'll need to meet documentation requirements for whichever current program applies to your situation. Standard refinance documentation includes recent pay stubs covering 30 days, your most recent W-2 forms, and two months of bank statements.

Self-employed borrowers need additional documentation. Prepare your complete tax returns for the past two years, including all schedules and forms. Your lender may also request a year-to-date profit and loss statement and balance sheet prepared by a CPA.

Property documentation requires a new appraisal in most cases. The lender orders this directly, but you should gather any recent home improvements documentation that might support your home's value.

Your current mortgage statement and payment history become crucial for relief refinance programs. Lenders verify your payment record directly with your current servicer, but having statements ready speeds up the process.

Common Confusion About Deleted Guidelines

Borrowers often find references to deleted guidelines in older articles, forum posts, or even outdated lender materials. This creates false expectations about available programs and qualification requirements.

Some borrowers assume that if they qualified under an old program, they automatically qualify for current programs. This isn't necessarily true. Each program has distinct requirements, and qualification standards change over time.

Real estate agents and even some loan officers sometimes reference outdated guidelines without realizing they've been deleted. Always verify that any program information you receive reflects current Fannie Mae guidelines.

The deletion date matters for loans already in process. If your loan application was submitted before October 2019 under the old guidelines, different rules might apply. But new applications must follow current guidelines only.

How to Research Current Refinance Options

Start with Fannie Mae's current guidelines for the type of refinance you need. Rate-and-term refinances follow different rules than cash-out refinances, and each has specific LTV limits and qualification requirements.

Your current loan servicer can tell you if your existing mortgage is owned by Fannie Mae. This information affects which refinance programs you can access and whether you qualify for streamlined processing.

Consider working with a lender experienced in Fannie Mae's current refinance programs. They can explain which options fit your situation and help you avoid wasting time on programs that don't apply to your circumstances.

Don't rely on online calculators or generic advice when dealing with relief refinance situations. The qualification requirements are specific, and small details in your situation can determine which programs are available.

References

For the official guidelines, see 4303.6: Other Guide provisions related to Freddie Mac Relief Refinance Mortgages℠ — Open Access in the Fannie Mae Selling Guide.