USDA Loan

  • Home
  • USDA Housing Loan Benefits
  • USDA Loan Information
    • Guaranteed USDA Rural Home Loan And USDA Direct Loan
    • USDA Loan Credit Requirements
    • USDA Loan Eligibility
    • USDA Loan Property Eligibility
  • USDA Loan Quote
  • USDA Loan State Information
    • Arizona USDA Loans
    • California USDA Loans
    • Ohio USDA Loans
  • Blog

USDA Makes Loan Refinancing Faster & Cheaper

October 31, 2016 By usdaloan

usda-makes-loan-refinancing-faster-cheaper

The U.S. Department of Agriculture has made refinancing USDA mortgages “ faster and cheaper” for its homeowners through its new Streamlined­Assist Refinance Program.

Tony Hernandez, the administrator of the USDA’s Rural Housing Service, announced recent changes that will help rural residents refinance to avail of low ­interest rates and lessen their monthly payments. These changes allow homeowners with current mortgages to not (i) secure a home appraisal, (ii) obtain a credit report, or (iii) go through a DTI ratio (debt­to­income) calculation if they opt to refinance into a 30­year term loan. These are effective 2 June 2016 and will apply to loans issued through the USDA and those with USDA­issued loan note guarantee.

Rural Refinance: Then and Now

The USDA has been rolling out those changes through the Rural Refinance Pilot Program launched in 2012. The pilot program was initially offered in 19 states which the agency considered to be hardest hit by the housing and economic downturn a couple of years back. Because of its success, the program was expanded to include 15 more states.

Click Here to Talk to a Lender Now!»

USDA’s Rural Refinance Pilot Program is currently available in 34 states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri, Mississippi, Montana, Nevada, New Mexico, New Jersey, North Carolina, Ohio, North Dakota, Oklahoma, Oregon, South Dakota, Rhode Island, South Carolina, Texas, Tennessee, Utah, West Virginia, Washington, and Wisconsin.

To date, some 9,500 homeowners have been able to refinance their mortgages, saving them $150 per month.

Owing to its success, the RHS has adopted this pilot into another refinance option for USDA mortgage loans and named it “streamlined­assist” refinance.

How Does Streamlined­Assist Refinance Work?

This special refinance program, just like the Rural Refinance Pilot Program, allows borrowers to refinance existing Section 502 home loans, guaranteed or direct, and thus lower their interest rates and monthly payments. As noted by Mr. Hernandez in a January 21, 2016 press release, the Rural Refinance process aims for “ greater speed and ease” when it comes to refinancing, requiring lesser paperwork to be submitted and shorter time to process the loan.

What it requires for each loan

The Streamlined­Assist Refinance program has the same features as the Rural Refinance Pilot Program, which include:

  • The interest rate of the loan must be fixed­rate, being at least 1% below the current loan’s rate.
  • The refinanced loan must have a term of 30 years.
  • The usual upfront fees and annual guarantee fees will apply.
  • The program allows borrowers to be added to but not to be removed from the loan unless they are divorced or deceased.
  • Cash out is not permitted.

Looking to Refinance? Talk to a Lender now! »

What it requires of you

If you want to avail of this “streamlined­assist refinance”, you must satisfy these requirements:

  • Able to meet the current eligibility requirements for household income;
  • Live in a rural area designated as eligible by the USDA or was designated as such during the original loan’s closing;
  • Property to be refinanced must be your primary residence;
  • Timely mortgage payments have been made within the last 12 months before the refinance.
  • Flood insurance is required if the property is located in a flood zone.
  • Documents such as Uniform Residential Loan Application and Form RD 3555­21 Request for Single Family Housing Loan Guarantee are to be submitted.

What it does not require of you

As noted earlier, USDA’s Streamlined­Assist Refinance will not require borrowers to obtain (i) a new appraisal except for loans that received a subsidy, (ii) a credit report, and (iii) a property inspection, as well as minimum property determinations set forth in the HUD Handbook.

The program also does not require DTI or debt­to­income ratios so waivers for DTI requirements are not needed.

USDA Refinance and You

Talk to a lender now for more details on how you can refinance your existing USDA loan through the Streamlined­Assist Refinance.

Click Here to get matched with a Lender»

Filed Under: USDA Lending Guidelines Tagged With: Rural Refinance, Streamlined­Assist Refinance, USDA Refinance

Latest News

  • Are there Government Home Loans for Rural Areas?
  • How Many USDA Loans Can One Person Have?
  • How You Can Use USDA Home Loan Eligibility Twice

Search

IMPORTANT MORTGAGE DISCLOSURES:

When inquiring about a mortgage on this site, this is not a mortgage application. Upon the completion of your inquiry, we will work hard to match you with a lender who may assist you with a mortgage application and provide mortgage product eligibility requirements for your individual situation.

Any mortgage product that a lender may offer you will carry fees or costs including closing costs, origination points, and/or refinancing fees. In many instances, fees or costs can amount to several thousand dollars and can be due upon the origination of the mortgage credit product.

When applying for a mortgage credit product, lenders will commonly require you to provide a valid social security number and submit to a credit check . Consumers who do not have the minimum acceptable credit required by the lender are unlikely to be approved for mortgage refinancing.

Minimum credit ratings may vary according to lender and mortgage product. In the event that you do not qualify for a credit rating based on the required minimum credit rating, a lender may or may not introduce you to a credit counseling service or credit improvement company who may or may not be able to assist you with improving your credit for a fee.

Copyright © Mortgage.info is not a government agency or a lender. Not affiliated with HUD, FHA, VA, FNMA or GNMA. We work hard to match you with local lenders for the mortgage you inquire about. This is not an offer to lend and we are not affiliated with your current mortgage servicer.

Contact Us | Terms of Use | Privacy Policy | Media | DMCA Policy | Anti-spam Policy | Unsubscribe

Mortgage.info

NMLS ID #1237615 | AZMB #0928735

8123 South Interport Blvd. Suite A, Englewood, CO 80112

CLICK TO SEE TODAY'S RATES