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 programs notes 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
Answer: The program is only reserved for homeowners that currently have a USDA mortgage. Homeowners with an FHA mortgage can click here to learn about the FHA streamline refinance program in 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 be eligible for this USDA refinance? G. Jackson – Tallahassee FL
Answer: Yes, the program allows for unlimited loan to value – it does not matter how much you are under water 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.
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 you new loan.
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 loan 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 have this monthly charge. If their loan is refinance into a new loan, it will be required for the life of the loan. 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 in a 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.
Please contact us at www.UsdaMortgageSource.com with any questions about USDA refinance or purchase loans here in Florida.
