USDA Refinance Loan - Why Won't My Current Loan Servicer Refinance My Loan?Date: December 19, 2012
The vast majority of existing USDA Guarantee Loans are serviced by lenders will not refinance their existing customers USDA Loans.
When borrowers call their current loan servicing department and request to refinance their existing mortgage loan they are told to call the local USDA Rural Development Office, submit a loan modification request, or refinance altogether out of the USDA loan program to another program such as FHA. None of these options are favorable to the borrower when the USDA Loan program allows a USDA Loan to be refinanced to another USDA Loan without any appraisal requirements.
For borrowers with have financed their loan through the USDA Direct Loan Program, Central Servicing out of St. Louis Missouri, one of their options to refinance the existing loan is through the USDA Guarantee Loan Program. The Direct Loan will not refinance any loan that they service.
To get started on refinance an existing USDA loan please call (866) 351-3229