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

Date: February 1, 2012

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.

An estimated 235,000 homeowner will be eligible to refinance their loan according to the USDA Rural Development. U.S. Department of Agriculture Secretary Tom Vilsack stated:

"Through initiatives like the one we are announcing today, the Obama Administration is taking aggressive steps to fight for the middle class homeowners who have played by the rules and are trying to get ahead. This pilot program will help homeowners to take advantage of historically low interest rates, and by working closely with lenders, we are helping rural homeowners protect one of the most important investments they will ever make"

To qualify for the USDA Rural Loan Pilot Program, borrowers must meet the following requirements:

Have a house financed through the USDA Guarantee Loan Program
Property must be 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
On time mortgage payment history over the last 12 months
Appraisal report, credit report, debt-to-income ratio requirements are all waived
Income can’t exceed current USDA Income Eligibility Requirements


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