It’s not uncommon for home buyers to be unaware that they are looking at properties in an area designated as rural by the USDA, and that they may qualify for the 100% financing that comes with a USDA loan. This is especially the case when searching for a new home in an area that is growing, and may feel more “suburban” than “rural.”
The Refinance Pilot Program is designed to assist existing Section 502 direct or guaranteed loan borrowers to refinance their homes with greater speed and ease. This program is available to borrowers in eligible states where steep home price declines, unemployment, and persistent poverty rates can make refinancing a current mortgage difficult.
So, what are the special advantages of the Guaranteed Loan?
- 620 minimum qualifying credit score.
- Available in a 30 year fixed term.
- Eligible properties include 1 – 2 unit primary residences (owned and occupied by the applicants and the loan security must include the same property as the original loan), Singlewide and Multi-Width Manufactured Housing, HUD/FHA, VA, Fannie Mae, or Freddie Mac approved Condominiums and PUDs.
- Properties eligible at time of origination that have become ineligible are still eligible/li>.
- Existing loan can be either a Section 502 direct or guaranteed loan.
- DTI and LTV calculations are not required.
- Guarantee Fee applies 2.75 upfront and .50 annual.
- No appraisals required.
- No cash reserves required.
- No limitation on source of funds for closing costs.
For more information on the USDA Single Family Guaranteed Refinance Pilot Program and our other program options, contact your Account Executive today!
Ready to get started?
Check out our USDA Lender Agent Role Submission Form by clicking here, and get started today.
Photography by [Jon Bilous] © 123RF.com
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