USDA Streamline Refinance – Helping Georgia Homeowners Save
USDA Rural Housing finally joined the party! Rural homeowners across Georgia now have a refinance option designed to help underwater homeowners take advanatage of hsitorically low interest rates.
With no equity requirements, no debt to income restrictions and very little documentation required, the USDA Streamline Refinance is welcomed relief for underwater Georgia homeowners.
It took a while for USDA to join the streamline refinance party. FHA has had a streamline refinance program for years, VA has their IRRRL and recently Fannie and Freddie joing the negative equity party with HARP 2.0
So, are you a Georgia homeowner with a USDA mortgage? Wondering how you can qualify? It’s suprisingly easy.
- Your current mortgage MUST be a USDA loan.
- The new interest rate must be a fixed rate 1% below your current USDA rate.
- USDA Streamline Refinance is only available on a 30 Year FIXED rate.
- A USDA Streamline Refinance loan may only include the principal balance of the loan plus a portion of or the full upfront guarantee fee. The upfront refinance guarantee fee is 1.5 percent. No cash out is allowed. Accrued interest, closing costs, lender fees, and late fees are not eligible to be part of the streamline refinance loan.
- USDA rural mortgage insurance WILL apply. As of 2012, all USDA loans have an annual mortgage insurance rate of .30 of the loan balance.
- No appraisal, no credit and no income documentation is required. Some USDA streamline refinance lenders, due to the history of storms in the pilot states, some rural housing lenders MAY require a property inspection to ensure that the subject property still meets USDA guidelines.
- USDA Streamline Refinance Pilot loans must be manually underwritten. They cannot be processed through the Guaranteed Underwriting System.
- Closing costs, as with almost ALL mortgage loans including USDA refinances, are still applicable. There are still third parties that have to do their jobs. Title needs to be pulled, you need to sign the closing docs and loan officers still need to feed their families. You do, however, have closing cost options that include NOT having to pay ANYTHING for your USDA streamline refinance out of pocket.
USDA Streamline Refinance Closing Costs
Don’t be fooled, all loans have closing costs, even your USDA Streamline Refinance. They may be reduced, but they still exist.
Don’t worry though, you have options! There are several ways to pay for your streamline refinance closing costs.
- Out of Pocket – You can always pay the closing costs out of pocket. You’ll ne skipping a mortgage payment, why not bring it to the closing table?
- Lender Credit – Your USDA lender can charge a slightly higher interest rate and use the proceeds to pay the closing costs for you!
- Combination of Both – Have your USDA lender charge some of the costs, you pay the rest. It usually results in less than a payment to the closing table.
No matter what part of rural Georgia you live in, if you have a USDA loan and you have been affected by the housing crisis and don’t think you can refinance then you need to think again.
The USDA Streamline Refinance can help underwater Georgia homeowners!