Freddie Mac Open Access Home Loan
The “Open Access” loan is the Freddie-Mac version of the Fannie Mae DU refi-plus. It is a virtually identical program that allows for borrowers to refinance even if the home has negative equity, up to 105% provided it was never insured. To qualify for this program, the borrower must establish that their existing loan to be paid off is currently backed by the Freddie Mac agency.
This, and the Fannie Mae program spring forth from the original 2009 stimulus/recovery act where they are defined as the HAMP mortgage, or the Home Affordable Mortgage Program.
These loans are for rate and term refinances only. Cash-out refinances are not available for this program, it is strictly for monthly payment relief. The one program difference in the Freddie Mac Open Access as compared to its Fannie Mae cousin is that this refinance is limited to your existing payoff amount plus $5000.00. That represents the maximum loan amount allowed on this loan. In many instances, this is not enough to pay for lender fees, title fees AND creating a new escrow account. Many of these Freddie Mac Open access loans will require a small amount of cash due from the borrower at close to cover any shortfall.
