USDA Rural Streamline Refinance Pilot Program – Guidelines

The USDA Rural Housing Guaranteed home loan program announced a new USDA Streamline Rural Refinance Pilot program to make refinancing easier and faster.  Why the changes?  It’s part of President Obama ‘s plan to help reward responsible homeowners. 

The new USDA streamline refinance pilot program will give California homeowners the opportunity to reduce their interest rate and payment who live in areas that experienced steep declining home values and high unemployment, both of which made refinancing near impossible in the past.

The new USDA Streamline Refinance Pilot program is similar to the Obama HARP 2 Refinance program which is designed to help upside down / under water home owners reduce their interest rate and payment.

click there —> USDA Streamline Refinance Rate Quote

USDA Streamline Rural Refinance Pilot Changes

1. Appraisal is no longer required to determine home value
2. Credit report and score is not required
3. Closing costs CAN be included (rolled into) new loan
4. Inspection reports are not required
5. A monthly mortgage insurance fee applies = .3%
6. Debt-to-income ratios are not calculated

USDA Streamline Rural Refinance Pilot: Who is Eligible?

1. Homeowners with existing section 502 Guaranteed USDA home loans in the ‘hardest hit’ states like California.
2. Borrowers who meet their county income requirements.
3. Have made their mortgage payment on time for the last 12 months.
4. Reside in an eligible rural area or an area that was eligible when they acquired the loan.
5. Borrower must be able to reduce their interest rate by at least 1%.

USDA Streamline Refinance Info Read Guidelines – AN 4634:

1. No cash out or debt consolidation allowed
2. Employment must be verified (but no DTI ratio qualifying)
3. New Guarantee fee of 1.5% and monthly MI of .3%
4. Borrowers cannot be added or removed (except for a death)
5. Home must remain primary residence

click there —> USDA Streamline Refinance Rate Quote

Take Action Now Before It’s Too Late

If you purchased a home using the 100% financing USDA Rural Home Loan and your current interest rate is over 5%, you only have until January 31, 2014 to apply and complete your USDA streamline refinance. 

Funding is still available for this USDA Streamline Refinance Pilot program, so if want to lock in a lower interest rate and save money, give me a call at (951) 215-6119 to get an estimate and start the process.

Related Articles of Interest:

• HARP 2 Refinance Eligibility Guidelines
• Should You Buy a Home with Low or No Down Payment?
• What Interest Rate Do I Qualify For?