On February 1, 2012, the Federal Government Announced a Rural Development Pilot Program to Assist Rural Borrowers Refinance their USDA Rural Development Mortgages to Get Lower Interest Rates and Payments
The program removes many obstacles that have prevent Tennessee homeowners from refinancing and taking advantage of historical interest rates.Previously many homeowners have wanted to refinance thier home loan to a more affordable monthly payment only to find that they did not have enough equity in the home to qualify. Unfortunately the value of their home had decreased like so many others in recent years leaving them no opportunity to refinance. Another hurdle keeping borrowers from having access to lower interest rates has been credit scores. Many found themselves playing catch up on some of the bills in recent months and years which hurt their credit scores.
Homeowners that benefitted from the Rural Development loan program and purchased their home with no down payment will be able to benefit again. The RD refinance program removes both obstacles mentioned above, allowing more homeowners to benefit from lower rates and lower payments. The process is much easier an simpler than the process they went through when buying the home. The borrower just needs to live in an eligble state (Tennessee qualifies), household income not to exceed the county loan limits and receive no funds from closing.
The list of requirements are short and fairly simple to to Meet:
1. The new interest rate must be at least 1% lower than the current interest
2. The new mortgage must be a 30 year loan.
3. Original borrowers may not be removed from the loan unless they are decesed, although additional borrowers may be added.
4. Borrowers may include closing cost in the new loan, removing the need to bring funds to closing.
5. No Cash out is allowed at closing.
6. The following items are not required: Appraisal, Inspection, Credit Report,
7. Lenders are not required to consider credit items except mortgage payment history. No payments more than 30 days late in the last 12 months.
Call me today at 866.435.6553 to see if you could save money on your mortgage payment. I look forward to hearing from you.