Mortgage interest rates, including USDA rates, have reached historic low levels as of late 2020. This trend should continue in 2021 as well. Due to the recent impacts of Coronavirus on the world economy, interest rates have decreased to levels never seen before. This is probably the only real good news in times like this, especially to homeowners that currently have a mortgage.
Now might just be the perfect time to refinance your loan and save significant money each month. Please see the basic USDA Refinance requirements below, and call us at ph: 800-743-7556 with questions.
- The homeowner must currently have a 502 USDA Guaranteed loan being serviced by a conventional lender or bank. If you have an FHA, VA or Conventional loan, please contact us to discuss other refinance options.
- The house must remain the borrower’s primary residence and not be listed for sale.
- Debt ratio calculations are not required.
- A new appraisal is not required, HUD Handbook certifications or any additional property inspections.
- No minimum equity requirements.
- 620 FICO middle score required, however some exceptions can be made ( this does not apply to the USDA home purchase program)
- The upfront USDA guarantee fee will be 1.0% and will be rolled into the loan
- The applicable Annual Fee (PMI calculation) will be .35%
- No cash out of equity permitted. This is strictly a rate reduction program.
- Unpaid fees to the current loan Servicer that may be included in the payoff may not be financed into the new loan. We can assist you regardless of your current loan servicer.
- The homeowner’s new mortgage may include the principal balance of the existing loan, accrued interest, eligible closing costs, and the USDA guarantee fee
- Income verification for all adult household members is required for income eligibility only – not for determining repayment eligibility.
- Borrowers may be added but not removed (unless deceased) from the mortgage.
- The mortgage must have been current for the past 12 months.
- Credit report needed for score pricing adjustments & mortgage history.
- Loans must be manually underwritten. GUS automated not available for the Streamline Assist.
- The new USDA loan must be fixed rate with 30-year fix term.
Please contact us today by calling ph: 800-743-7556 or just submit the Info Request Form on this page.