There are two programs that enable you to refinance your current USDA Mortgage. Which program you will be placed in depends on which type of USDA Mortgage you currently have.

Program 1: Streamline Assist Refinance

• Can be used to pay off either a USDA Guaranteed loan or a USDA Direct loan

• Appraisal not required if paying off a USDA Guaranteed loan

• Appraisal only required when paying off a USDA Direct loan with a subsidy recapture

• Any subsidy recapture must either be subordinated to the new loan or paid in full at closing

• No debt to income ratios are calculated

• Must have clean mortgage payment history for the last 12 months

• New payment must be at least $50 less than current payment

• Borrowers may be added to the current loan

• Borrowers may not be removed (unless deceased) from the current loan

• Any closings costs can be financed into the new loan amount

Program 2: Streamline Refinance

• Can be used to pay off either a USDA Guaranteed loan or a USDA Direct loan

• Appraisal not required if paying off a USDA Guaranteed loan

• Appraisal only required when paying off a USDA Direct loan with a subsidy recapture

• Any subsidy recapture must either be subordinated to the new loan or paid in full at closing

• Borrowers may be removed as long as at least one original borrower remains on the loan

• Debt Ratio is calculated

• Any closings costs can be financed into the new loan amount

• New loan amount may not exceed the original loan amount of the loan being refinanced

• The new loan amount is limited to:

  • The principal balance of the loan being refinanced

  • The upfront guarantee fee (if financed)

  • Accrued interest (current interest)

  • Reasonable and customary fee for re-conveyance