USDA Refinance activity is growing with the recently announced launch of the USDA Rural Loan Pilot Program. While this is an exciting opportunity for USDA Guarantee Loan borrowers in the 18 states that the USDA Rural Loan Pilot Program is available there are many USDA Refinance options for all USDA borrowers.
To determine which USDA Refinance option is best for them working with a USDA focused Loan Officer is key, preferably if the Loan Officer is a Mortgage Broker. Here's why. The USDA Loan program is an extreme niche loan product, with complicated underwriting standards, and the only loan program that requires two Underwriters touching the file, even on a USDA Refinance. As for the benefit of having a Loan Officer that is a Mortgage Broker; each lender or bank has their own "overlays" which are internal guidelines that will exceed the standards set forth by USDA Rural Development. If a Loan Officer is a Mortgage Banker chances are they have one set of guidelines available for completing a USDA Refinance, while a Mortgage Brokers can "shop" your loan from one investor to another if the USDA Refinance has unique requirements.
A competent USDA oriented Loan Officer will evaluate the following issues when making a recommendation for which USDA Refinance Loan options is best for you:
- What is your income. No matter what USDA Refinance option is available, if your household income exceeds the USDA income eligibility limits for the county which the house is located, the borrower is ineligible for a USDA Refinance
- What state is your property located in? If your property is located in Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Rhode Island, South Carolina or Tennessee you may be eligible for the USDA Rural Loan Pilot Program Program
- If eligible for the USDA Rural Loan Pilot Program is that really your best option or should you consider a USDA Streamline Refinance
- What is your house worth in relationship to the outstanding mortgage
- Is your mortgage serviced through a financial institution such as a bank or lender or through the U.S. Federal Government
- Do you want to pay the closing costs, either out-of-pocket or by rolling into the loan, to obtain a better interest rate or have the lender pay the closing costs through a No Closing Cost Refinance
To learn more about your USDA Refinancing Loan Options go to www.USDARefinanceLoan.com, which offers detailed explanations for for each of the four USDA Refinance options currently availble to existing USDA Guaranteed Loan and USDA Direct Loan holders interested in refinancing their USDA Loan. Or call USDARefinanceLoan.com directly at (866) 351-3229 to learn more about your USDA to USDA Refinance options.