February 16, 2013

USDA Refinance Loan – Supporting Document Requirements

When submitting your USDA Refinance Loan paperwork one of the surprising facts is that the USDA Guaranteed Underwriting System or GUS isn't programmed to identify whether or not the existing loan is guaranteed by USDA. As such the borrower must include certain documentation when submitting their USDA loan refinance paperwork.
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February 1, 2013

USDA To USDA Refinance – California and Hawaii USDA Mortgage Holders Have Much Too Gain By Refinancing Their Existing USDA Loan

Homeowners in California and Hawaii with an existing USDA Rural Development Loan obtain a disproportionate greater benefit from refinancing their USDA Loan than borrowers in most other U.S. States.
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January 24, 2013

USDA Refinance Pilot Program Expanded

Effective January 24, 2013 with the publication of USDA AN 4707, the USDA Refinance Pilot Program has been expanded to include the following states: Alaska, Arkansas, Colorado, Idaho, Kansas, Missouri, Montana, North Dakota, Oklahoma, South Dakota, Texas, Utah, Washington, West Virginia, and Wisconsin.
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January 14, 2013

USDA Refinance Loan – Household Income Qualifications

All borrowers seeking to refinance their existing USDA Rural Loan will need to meet USDA income qualification guidelines. These guidelines are designed to ensure that the household income is less than USDA mandated maximum income thresholds.
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December 19, 2012

USDA Refinance Loan – Why Won't My Current Loan Servicer Refinance My Loan?

The vast majority of existing USDA Guarantee Loans are serviced by one of a just few major banks. However, none of these loan services will refinance their existing customers USDA Loans.
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November 15, 2012

USDA Refinance Owner Occupancy Requirements

Can I Refinance To A New USDA Loan When I Don’t Live In The House Anymore? For borrowers who have an existing USDA Loan and no longer occupy their house, can’t refinance into a new USDA Loan.
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October 23, 2012

What Happens When The Homeowner Make Too Much Income

One of the drawbacks of the USDA-To-USDA Rural Development Refinance program is that there are income restrictions that may preclude a homeowner who has an existing USDA Loan from refinancing into a new USDA Loan due to the current household income exceeding the county specific household limits.
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October 11, 2012

USDA Refinance Loan – Funding Availability

Funds for Fiscal Year 2013 (October 1, 2012 to September 30, 2013) for the USDA Guaranteed Rural Housing Program are available today for purchase and refinance transactions. USDA Rural Development will now issue Conditional Commitments (RD Form 1980-18) for eligible USDA Guaranteed Rural Loans without the "subject to" verbiage.
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October 1, 2012

USDA Refinance Program Change – New Upfront Guarantee Fee and Annual Fee for Fiscal Year 2013

Effective October 1, 2012 the up-front Guarantee Fee for refinance transactions will increase from 1.50 to 2.00%. The Annual Fee for both refinance transaction will increase from .30% to .40%.
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September 12, 2012

USDA Guaranteed Loan Refinance – Post Divorce and Legal Separation

In order to refinance a USDA Guaranteed Loan after a divorce the borrower to the transaction that will maintain ownership of the property must be able to meet several additional requirements in order to qualify for the new USDA Loan.
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August 16, 2012

USDA Refinance Loan – What’s This Monthly Annual Fee Charge?

The majority of USDA to USDA Refinance borrowers will notice that their new USDA Loan now includes a monthly add on fee that is a pro-rated portion of the new USDA Annual Fee requirements.
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July 3, 2012

USDA Guarantee Loan Refinance – USDA Loan No Closing Cost Refinance

When refinancing a mortgage loan there are always costs associated with the transaction including fees that go to the lender, settlement/title/escrow office, and government recording fees. In addition, a new escrow account, which includes local and state taxes and homeowner insurance, needs to be created to handle the payment of these items as the payments come due.
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June 1, 2012

USDA Refinance Requirements – When is the Appraisal Report Required

When refinancing an existing USDA Rural Development Loan there are situations in which a new appraisal report is mandatory. The primary situation in which an appraisal report will be required is when the current loan is through the USDA Direct Rural Development Program.
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May 15, 2012

USDA Refinance Loan – Household Income Eligibility

When refinancing using a USDA Rural Loan, whether the program is the new USDA Pilot, USDA Streamline Refinance, or USDA non-Streamline Refinance the borrower’s household income is evaluated to ensure that the household income doesn’t exceed the current USDA Income Eligibility Guidelines.
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April 16, 2012

USDA Direct Loan Borrowers – Subsidy Recapture

Homeowners with a Section 502 USDA Direct Loan receive a “Subsidy”, which is the value given by Rural Development to USDA Direct borrowers for receiving preferential interest rate and/or mortgage payment financing. This Subsidy account will be listed on the monthly mortgage coupon, instructions for receiving a payoff, and the final payoff statement.
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February 1, 2012

USDA Announces the Introduction of the USDA Rural Loan Refinance Pilot Program

The U.S. Department of Agriculture announced the launch of the USDA Rural Loan Refinance Pilot Program to help rural borrower take advantage of today’s low interest rates when refinancing their existing USDA Guarantee Mortgage. The Single Family Housing Guaranteed Rural Refinance Pilot Program is open to homeowners with a USDA Guarantee loan in Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Rhode Island, South Carolina and Tennessee.
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January 23, 2012

USDA Rural Loan – Property Location Eligibility Requirements

What happens if a house that is financed using the USDA Rural Development Program and the house is no longer in a designated USDA Eligible Area. Can the borrower still refinance to a new USDA Loan even though USDA no longer classifies the area as rural?
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December 7, 2011

USDA Upfront Guarantee Fee – Refinance Cost Increase

Effective Wednesday December 7, 2011 the upfront Guarantee Fee for will be increased from 1.00% to 1.50% for the refinance transactions.
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