Refinance
I Want to Refinance My Home.
USDA Loan Refinancing
If you've received a United States Department of Agriculture (USDA) loan in the past, you know how beneficial this program can be for homebuyers. Even better news for current USDA Rural Development borrowers looking to lower their rate, the USDA offers a streamline refinancing option known as the USDA Rural Refinance Pilot program.
In recent years, the popular USDA Streamline Refinance Program has been expanded to include 15 additional states, giving thousands more people access to an appraisal-less, unlimited-LTV refinance; and, according to the USDA, approximately half a million homeowners are now eligible for the USDA's streamlined refinance program.
USDA Streamline Refinance Eligibility
The USDA Streamline Refinance is a pilot program for U.S. homeowners. First launched in 2012, the streamline program was designed to reflect pre-existing, successful streamline programs like the popular VA Streamline Refinance or IRRRL.
If you've received a USDA mortgage and feel that your rate is higher than the current rate, refinancing your loan is an option. There are a few requirements, however, to meet before you begin the refinancing process.
- The mortgage to be refinanced must already be a 502 USDA Loan (Guaranteed or Direct).
- The mortgage to be refinanced should be current (not delinquent).
- The refinance is to result in a lowering of the borrower's monthly principal and interest payments.
- No cash may be taken out on mortgages refinanced using the USDA loan refinance process.
Other than these requirements, borrowers must use the refinance on their primary residence and the borrower must have made 12 consecutive, on-time, payments directly before the refinance.
USDA Streamline Process
The USDA mortgage refinance is generally a streamlined process. Since you have already qualified and borrowed a 502 Direct or Guaranteed USDA Loan, some documentation and information would be redundant. The streamlined process will shorten the time necessary to close on your loan and will require you to provide less paperwork and fill out fewer forms.