The USDA home loan program is a loan program that often times gets lost in the shuffle when being discussed about home loan options for potential and current homeowners.
The program is used considerably less often than Conventional, FHA or VA loan programs and the reason that mainly is, is due to the restrictions the program places on potential homeowners.
First of all, the big caveat for the program is that in order to use the loan program to purchase a home, you must be in a USDA designated rural area. However, as is the case here in the Phoenix metropolitan area, often times these rural areas are actually in areas that are very close in proximity to other very urban or suburban areas.
These include areas like Goodyear, Queen Creek, Waddell, Buckeye and Maricopa, Arizona just to name a few.
Now, in recent years, as streamline refinance programs have become very popular for loans such as the FHA or VA loan, USDA loans have been vastly ignored.
However, USDA loans themselves also offer streamline refinance programs that allow homeowners with existing USDA loans to obtain a lower interest rates with less documentation, without an appraisal and with limited fees, based on credit approval (currently a 640 minimum credit score is required for the USDA streamline refinance program).
So, if you are a homeowner with a USDA home loan, then it may make sense to look into a USDA streamline refinance, before interest rates move higher.
This may give you an opportunity to take advantage of a program that is designed to essentially streamline the process of lowering your current interest rate and payment.
For more information on current home loan programs and options for existing and potential home owners, please contact Bill Kamboukos of Strategic Mortgage at (480) 219-3682 or by emailing: info@strategicmtgaz.com or online at www.strategicmtgaz.com
Strategic Mortgage, LLC – AZBK#0909514 - NMLS#158804 - Equal Housing Lender
Vasilios Kamboukos – NMLS#160440
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