USDA Loans (Rural Development)

USDA Loans

Streamlined Assist Refinance

  • Up to 100% Loan-to-Value
  • 640 Minimum Credit Score
  • No Appraisal Needed
  • 1.00% Upfront Mortgage Insurance Premium
  • Financed into Loan Amount
  • 0.35% Monthly Mortgage Insurance
  • Remains for Life of Loan

USDA refinance loans, also known as USDA Streamline Refinance loans or USDA Rural Refinance Pilot Program loans, are mortgage loans offered by the United States Department of Agriculture (USDA) to help homeowners with existing USDA loans refinance their mortgages for more favorable terms.

Here are some key points about USDA refinance loans:

  1. Streamline Refinance: The USDA Streamline Refinance program is designed to simplify the refinance process for homeowners with existing USDA loans. It typically does not require a new appraisal or extensive documentation. The purpose of the USDA refinance loan is to reduce the interest rate or monthly mortgage payments on the existing USDA loan.
  2. Eligibility Requirements: To qualify for a USDA refinance loan, borrowers must have an existing USDA loan and meet certain eligibility criteria. The property being refinanced must also be located in an eligible rural area as defined by the USDA.
  3. Loan-to-Value (LTV) Ratio: USDA refinance loans do not have a maximum LTV ratio requirement, which means you may be able to refinance without a substantial equity position in your home. However, the new loan cannot exceed the current outstanding principal balance plus eligible closing costs.
  4. Credit Requirements: USDA refinance loans generally have more lenient credit requirements compared to conventional loans. While there is no minimum credit score requirement set by the USDA, individual lenders may have their own credit score requirements. Lenders will assess your credit history and financial stability to determine your eligibility for the refinance loan.
  5. Appraisal and Underwriting: In some cases, a new appraisal may not be required for a USDA refinance loan. The lender may use the original appraisal if it is still valid. Additionally, the underwriting process for USDA refinance loans may be streamlined, making it quicker and less stringent compared to other refinance options.
  6. Closing Costs: USDA refinance loans involve closing costs, which can include lender fees, appraisal fees, title search fees, and other expenses. However, the USDA allows borrowers to include eligible closing costs in the new loan amount, minimizing the upfront out-of-pocket costs.
  7. Documentation: The documentation required for USDA refinance loans may vary among lenders. Generally, you will need to provide proof of income, employment verification, and documentation showing the current status of your existing USDA loan.

It's important to consult with a lender or mortgage professional experienced in USDA loans to understand the specific requirements and benefits of a USDA refinance loan based on your individual circumstances. They can guide you through the process and help determine if a USDA refinance loan is the right option for you.