Below we have listed some on the commonly asked questions for the new USDA Pilot Refinance program available here in Florida. Do you have a question? Please contact us at (904) 302-6060 or just fill out the short USDA request form on the right side of this screen →
All the USDA refinance requirments can be found here http://www.usdamortgagesource.com/usda-pilot-refinance.html
Question: I received a FHA back in 2010, can I use this new USDA program to refinance my mortgage? H.Leven – Ocala FL
Question: I purchased my home around 5 years ago using the USDA Rural Housing mortgage. I currently owe around $200,000 on my loan, but the value of my home has gone down a lot and have negative equity. I believe my house is only worth around $150,000 now. Will I still be eligible for this USDA refinance? G. Jackson – Tallahassee FL
Answer: Yes, the program allows for unlimited loan to value (LTV) – it does not matter how much you are underwater or “upside down” on your home loan. No new appraisal is needed with the Pilot refinance program.
Question: What are some of the main requirements lenders look for with the USDA Pilot refinance loan? S. Gordon- Clermont FL
Answer: First, the homeowners must have a USDA Rural mortgage with NO late payments in the 12 months. Second, income eligibility requirements do apply for anyone living in the household and earning any income – even if they are NOT on the loan application. The household income must be under the limits in place for each county in Florida. Please click here to learn more. This same USDA income requirement applied to household when the home was originally purchased.
Question: How do the closing costs work for the USDA refinance, how much money do I need to plan to bring to closing? T. Ruben –Wesley Chapel FL
Answer: All closing costs, tax and insurance escrows plus the USDA guarantee fee can be rolled into the new loan if the homeowner likes. There are no out of pocket costs to the homeowner.
Question: I paid the 2% Guarantee fee to USDA when I received my loan a few years back. Will I need to pay this fee again if I decide to refinance my home. J. Fernandez – Collier county
Answer: Yes, the USDA Pilot refinance program will require a the 2% Guarantee (or funding fee) that can be rolled into your new loan along with all closing costs.
Question: I heard the USDA requires a monthly mortgage insurance costs now? I didn’t have this when I originally received my loan in 2009. Is this required with the refinance? A. Hassell – Winter Garden FL
Answer: Great question.. Yes, all USDA loans originated after October 2011 require a small monthly mortgage insurance premium to be paid each month. This is for both refinance and purchase loans. Homeowners that received their USDA loan before Oct 2011 do not currently have this monthly charge. If their loan is refinance into a new loan, it will be required for the life of the loan – 30 years. The amount of the fee is .40% of the loan amount, very small when compared to other loans like FHA , etc. During the evaluation the USDA loan specialist will review this with you in detail. They will check to insure the savings plus lower interest rates will still make sense with the monthly mortgage insurance charge being added.
Question: Are the terms of the new refi program the same as my original loan? V.Braddock – Lakeland, FL
Answer: Yes, standard USDA 30 year fix terms with no early payoff penalty.
Question: Do I need a certain credit score to do this program? R.Santiago – St. Augustine FL
Answer: No, on-time mortgage payment history over the last 12 months will be the primary item reviewed.
Question: How much lower will my interest rate be? H.Daniels – Lake City, FL
Answer: That depends since USDA interest rates change each and everyday until locked in. However, the Pilot program guidelines require the homeowners new interest rate be at least 1% below their current rate in order to meet the min benefit policy. As of July 2014, interest rates are at their lowest point of the year! It’s a great time to look into the refinance program.
Question: I heard the USDA approved map (locations that are considered eligible) may be changing on October 1, 2014. I purchased my home in 2006 and obviously it was USDA eligible. What happens if my house is not eligible after the map changes, will be I still be able to refinance?
Answer: Yes, you are grandfathered in regardless if the rural approved locations change in the future.
Question: I read online that the USDA Pilot program is only offered for a limited amount of time, to limited states?
Answer: Yes, the Pilot refinance program is set to expire at the end of 2014 unless extended.
Please contact us at http://www.usdamortgagesource.com/usda-pilot-refinance.html with any questions about USDA refinance or purchase loans here in Florida. Please note the USDA Loan Rural Refinance (Pilot program) is set to expire end of 2014.
USDA Loan Rural Refinance- Homeowner Q&A – July 2014