Below we will discuss all the important 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 rates are still near historic low levels.
This is great not only for new home buyers but also for existing homeowners that want to refinance. The USDA Streamline Assist program makes refinancing easy. The program is available to qualified homeowners that currently have a USDA mortgage.
USDA Refi Program Highlights:
- No new appraisal or home inspection. If you are a homeowner that owns more on your mortgage than the current home value, it’s perfectly fine. The program is designed to help homeowners that are “underwater” on their home mortgage.
- Low secure 30-year fix rates.
- No maximum loan amount limits.
- Homeowners debt to income ratios are not calculated.
- All closing costs can be included in the borrower’s 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, and Conventional loans have separate options, please contact us below for details.
- Homeowners mortgage payments 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 homeowners 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 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 homeowners.
- 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.
Please read the most common USDA FAQ’s here and contact us with any questions. Applicants can submit the Information Request form found on this page, or call ph: 800-743-7556