USDA Loans ARRA Refinance Funds NOW Available!
The USDA just released a Notice of Funding Availability for USDA Loans Refinance Assistance under the American Recovery and Reinvestment Act of 2009.
Current USDA Loans may utilize Refinancing by using ARRA funds but will find it is a bit more restrictive than the typical USDA Loans.
ARRA Refinance Requirements for USDA Loans (note it is very similar to the old FHA Streamline):
- Any new USDA Loans must have an interest rate at least 1% lower than the current interest rate.
- On the USDA Loan Refinance the new maximum loan may be no more than the principal on the existing USDA loan plus the guarantee fee.
- The new USDA Loan including the guarantee fee cannot be more than the original loan amount.
- If there are more than one borrower on the existing USDA Home Loan and one of them wants to relinquish their interest in the property, the remaining borrower must prove ability to repay.
- The existing USDA Home Loan must be current for 180 days prior to the new USDA Loan Application.
- If the loan amount of the new USDA Loan is to be larger than the existing principal of the original loan, then an appraisal will be required.
- If the existing USDA loan is more than 12 months old, a new appraisal will be required.
- The maximum loan origination fee allowed for the new USDA Loan is 1%.
To apply for a USDA Loan Refinance, click on Get Started on USDA today.
Apply online for a USDA Loan and get pre-qualified today.
