USDA Loan Refinancing with USDA Loan Info
If you or someone you know, received a United States Department of Agriculture (USDA) loan in the past, then you inherently see how beneficial this program can be. Specifically for the low- to medium-income homebuyers.
By providing $0 down and lenient eligibility requirements, the USDA loan is able to open the housing market to buyers who would not otherwise qualify.
When the USDA Streamline Refinance program was first introduced in 2012, the government limited its geographic range to 19 states in order to beta test the program and work out any issues.
On July 14, 2016 the USDA announced the Streamline Assist Program would be available to all states across the US.
USDA Loan Refinancing and Streamline Refinance Eligibility
The USDA Streamline Refinance is only available if you currently have a USDA home loan thru the 502 Guarantee program or Direct.
Below are some other requirements of the program.
1. Prior to applying for the streamline refinance, you must have made 12 consecutive on-time payments
2. Your payment must drop by at least $50 per month
3. The refinance must be a primary residence
4. The mortgage to be refinanced should be current (not delinquent).
5. No cash can be taken out on the streamline refinance.
6. Must be your primary residence
You Can Download the USDA Streamline Refinance Program Comparisons Here
More About the USDA Loan Refinancing
The Streamlined Assist refinance product is a new USDA Loan Program modeled after a pilot product launched in 2012, as previously mentioned
That program was not accessible to all borrowers due to the fact that it contained a requirement where the interest rate be reduced by a minimum of 1%.
The new program however, no longer requires the 1% improvement and, for greater range of accommodation, instead requires just a tangible benefit to the borrower of $50/month ($600/year) or greater reduction in principal and interest, including the annual guarantee fee.
The new product is available nationally and is available to anyone with a USDA loan.
On an average loan of $165,000, eligible customers could save an extra $2,877 in upfront fees.