Borrowers often refinance in order to save money. This was not always the case with the USDA loan, though. Because of the hefty fees to obtain a USDA loan, many borrowers could not refinance. This year things changed drastically for USDA loan holders. Not only did the fees decrease for USDA loans, but they opened up a pilot program, which made refinancing possible in many areas of the country. The USDA initially offered the pilot … [Read more...]
What You Need to Know About USDA Refinance Loans
If you currently have a USDA loan, you have several options available to you when you want to refinance. These refinance options include a pilot, streamline and non-streamlined refinance. The difference between the programs is how you verify your eligibility. The streamline program, as the name suggests, is much simpler, but has stricter guidelines. The non-streamlined refinance offers a little more flexibility for USDA borrowers and … [Read more...]
LTV Limits for USDA Streamline Refinance Loans
The LTV or Loan-to-Value Ratio can be a real hurdle when you try to get a mortgage. Oftentimes, the LTV is too high, forcing you to either put more money down on the home if you are purchasing or wait to refinance until the value is higher. The LTV is dependent on the value of the property, which comes from the appraisal. On the USDA Streamline Loan, however, there is no required appraisal, so the USDA Guarantee Fee does not play a role … [Read more...]
Can I Get Cash Out With a USDA Loan Refinance?
Paying your mortgage down means you may have equity in the home. Sometimes it even happens when your value increases. What do you do with that money? Do you let it sit? Do you take it out? If you have a USDA loan, you don’t have quite as many options as others. If you want to keep the USDA loan, you can only take cash out for limited reasons. We discuss them below. Fixing Up Your Home The only reason the USDA allows cash out with a … [Read more...]
How Much Equity Can You Borrow with a Cash-Out Refinance?
If you have equity in your home, you might want to tap into it in order to have cash in hand. Some people just don’t like having their investment tied up in their home. Others need the cash for things like home renovations, college tuition, or debt consolidation. Just how much of your equity are you allowed to take out? It depends on the loan program, as each program has different requirements. Conventional Cash-Out Loan If you are … [Read more...]
USDA Loan Refinance Options
Low to medium-income borrowers often benefit from the USDA loan program. With no down payment requirement and flexible guidelines, you can get the USDA loan with little money out of your own pocket. But what happens when you need/want to refinance? What options do you have? Looking for Current Mortgage Interest Rates? Click Here. The USDA Streamline Assist Refinance The USDA started a streamline refinance program, much like the FHA … [Read more...]
USDA Lowers the Cost to Refinance Rural Housing Loans
Today, the housing industry is still trying to recover from the housing crisis. Not every area has seen full recovery and growth as of yet. In an effort to continue the growth and recovery, many agencies stepped in to make refinancing easier and more affordable. Among those agencies is the USDA who lowered the cost to refinance rural housing loans as of June 2016. USDA Rural Housing Service Administrator, Tony Hernandez stated: “The … [Read more...]