What is the difference between a USDA Streamline Refinance and the USDA Refinance Pilot Program?

What is the difference between a USDA Streamline Refinance and the USDA Refinance Pilot Program? These are 2 great programs which can help homeowners refinance their USDA mortgages. Both USDA Refinance Loans are designed to help reduce your interest rate and save money without the need for an appraisal. Here is a short video that will explain the differences between the two.

What is the USDA Refinance Pilot Program?

What is the USDA Refinance Pilot Program? This video tip explains the highlights and how it can help homeowners with an existing USDA loan reduce their rate & save money each month without the need for an appraisal. If you are a realtor, please forward this tip to any past clients who purchased a home with USDA financing. This is a great way to stay in touch and help at the same time.

Call me for details on how to qualify for the USDA Refinance Pilot Program. I can be reached at (800) 935-8330 or by email at SeanS@MPLX.org. You can also apply online or subscribe for free on the right to receive more USDA details and tips.

What is a USDA Streamline Refinance?

What is a USDA Streamline Refinance?  Who qualifies for this type of USDA Loan? This video tip explains the details and how to qualify for a USDA Streamline Refinance.

How to Qualify for a USDA Refinance?

Although the USDA Rural Home Loan is commonly associated with purchasing a property, another feature of the program does allow for homeowners that qualify and have existing USDA loans to refinance and receive the benefits of a lower rate and payment. Here are the details:

• Above all, the current loan must already be an existing USDA loan. Basically, you must have purchased the home using a USDA Rural Housing Loan and still have the original loan in order for this even to be an option.  For example, if you currently have any other type of mortgage, then it is not possible to refinance into a USDA Rural Housing Loan.
• Streamline Refinance: With this option, there is no appraisal required but you can only finance the balance owed on the mortgage and the 1% USDA Guarantee Fee.  Usually on a traditional refinance, closing costs are able to be financed into the loan thus saving a large out of pocket expense.  With the streamline option, the financing of closing costs is not allowed so out of pocket expenses would be a factor. However, in today’s market, many homeowners are having issues with refinancing successfully due to appraisal problems so this could be a solution.
• Non-Streamline Refinance:  An appraisal is required and provided that the property value will support the new loan amount, then the borrower could elect to finance in closing costs up to the appraised value plus the guarantee fee, thus saving out of pocket expenses.
•  30 year term, Fixed Rates Only, No Cash Out allowed.
• Total household income cannot exceed the Rural Housing Service Moderate Income Limit for the county in which the property is located.
• Minimum credit needed and underwriting approval is required on all transactions.  Read about manual underwriting for scores below 640.

Other underwriting guidelines may apply for each individual situation, so please contact me directly on how to qualify for a USDA Rural Home Loan at (800) 935-8330. If you are ready to get started, please Apply Online to begin the pre-approval process.