USDA Refinance Loan

---

As with all home loans, the USDA Streamline Refinance has minimum qualification standards. The good news is that the standards are fairly loose.

To qualify for a USDA Streamline Refinance, you must meet the following eligibility criteria :

• The home you're refinancing must be your primary residence
• Prior to your application date, you must have made your last 12 USDA home loan payments on-time
• The home must be in a qualifying state, as listed above.

That's it! There is no credit report requirement, no appraisal requirement, and no property inspection requirements. All credit scores are accepted into the USDA Streamline Refinance program, and loan-to-value is ignored. It doesn't matter if you're underwater.

Although the USDA has removed most qualification standards for its USDA Streamline Refinance program, there are some program guidelines of which USDA homeowners should be aware. For example, as with all USDA home loans, the government will collect its typical, up-front loan fees plus its annual guarantee fees as part of the refinance.

Other USDA Streamline Refinance notes include :

• Flood insurance is required for all USDA-backed homes currently located in a flood zone.
• The program allows for 30-year loan terms only. 15-year or 20-year loans terms are not allowed.
• To use the program, your new mortgage rate must be at least 1% below your current mortgage rate.

And, lastly, the USDA Streamline Refinance program is for rate-and-term refinances only. Cash-out mortgages are not allowed.