USDA Rural Housing has made some positive changes to their refinance program starting June 2016. The new USDA streamline assist refinance is available to help home owners that currently have a USDA loan on their house. This program is an enhanced version of the USDA Pilot program that has been available in recent years. The new Streamline Assist program is now available to qualifying loan applicants in all 50 states. We have outlined the benefits and restrictions below. Please call us at ph: 800-743-7556 with questions.
- NO new appraisal – this program does not require a new appraisal, HUD Handbook certifications or any additional property inspections. No equity needed, home-owners can be up side down on your loan to value
- 620 FICO middle score required, however some exceptions can be made ( this does not apply to the USDA purchase program)
- Borrowers must receive a “tangible benefit” to USDA refinance – this means a $50 or greater reduction in principal and interest payment.
- The upfront USDA guarantee fee will be 1.0% and will be rolled into loan
- The applicable Annual Fee will be .35%
- No cash out of equity permitted
- Unpaid fees to the current loan Servicer that may be included in the payoff may not be financed into the new loan. We can assist you regardless of your current loan servicer – Chase, Citi, U.S. Bank, etc.
- New loan may include the principal balance of the existing loan, accrued interest, eligible closing costs, and the USDA guarantee fee
- Income verification for all adult household members is required for income eligibility only – not for determining repayment eligibility
- Borrowers may be added but not removed (unless deceased) from mortgage
- Home must remain the borrower’s primary residence. The home must not be listed for sale
- Debt ratio calculations are not required
- Mortgage must have been current for past 12 months
- Credit report needed for score pricing adjustments & mortgage history
- Loans must be manually underwritten. GUS automated not available for the Streamline Assist
- The new USDA loan must be fixed rate with 30 year term
Home owners can read common USDA refinance FAQ’s here. Call us at ph: 800-743-7556 or just submit the Quick Contact form to learn more.
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