Below we will discuss all the important August 2016 USDA loan updates. Some great news for new home buyers regarding the USDA 502 Guarantee Program. First, the national average 30-year fixed home mortgage interest rate in the U.S. fell to 3.36 percent Friday, matching the record low first reached at the end of 2012. This is great not only for new home buyers, but also existing home owners that want to refinance. The USDA Pilot Streamline Assist program makes refinancing it easy. The program is available to qualified home owners that currently have a USDA mortgage.
USDA Refi Program Highlights:
- No new appraisal or home inspection. If you are a home owner that owns more on your mortgage than current home value, it’s perfectly fine. The program is designed to help home owners that are “underwater” on their home mortgage. Great for home owners in the hardest hit locations of Florida, California, Texas and Arizona.
- Low secure 30 year fix rates.
- No maximum loan amount limits.
- Home owners debt to income ratios are not calculated.
- All closing costs can be included into the borrowers new loan. No out of pocket costs to close or apply.
Important reminders before applying for the USDA refinance loan:
- You must currently have a USDA loan to be eligible. Borrowers with FHA, VA, Conventional loans have seperate options, please contact us below for details.
- Home owners mortgage payment must have been paid on time for the previous 12 months.
- The income for the household must be below the USDA income limits.
- The property must still be your primary residence.
- The home owners original loan must have closed at least 1 year prior to the refi request.
- Read more about all the refi options under the USDA Refinance page above.
USDA also has many benefits for the first time home buyers looking to purchase their first home.
USDA Home Purchase Benefits:
- No down payment required, 100% financing.
- Home seller can pay buyers closing costs reducing the out of pocket expense to buyer.
- Buyers are not required to be first time home owners.
- Many locations around the country are still eligible and considered “Rural” by Rural Development. Texas, Arizona, Florida, California have approved eligible zones , many just outside of the major cities.
- Safe secure 30 year fix rate term.
USDA Guaranteed Fee Being Reduced Soon
This is great news for both USDA purchase buyers and home owners that are considering a USDA refinance. USDA announced the upfront Guaranteed Fee will be reduced significantly in a few months. Please read more about new 2016 USDA Guaranteed Fee here.
Please read the most common USDA FAQ’s here and contact us with any questions. Applicants can submitting the Information Request form found on this page, or call ph: 800-743-7556