USDA Streamline Refinancing In Medina Ohio
Receive A Zero-Out-Of-Pocket USDA StreamlineRefinance.
USDA loans offers mortgages to homeowners with low income, as a way to build prosperity in rural areas. The USDA Streamline Refinancing option is a simple process with no appraisal requirements and closing cost incentives.
What are the eligibility requirements?
For most USDA refinancing programs, the requirements are as follows:
- The borrower must be using the property as their primary residence
- Your mortgage must be from a USDA Direct Home Loan or a USDA Guaranteed Home Loan
- You must have at least 12 consecutive on-time payments prior to application
- Your income must fall into the USDA limits
Why do people opt to refinance a USDA loan?
The USDA Streamline program can save you money monthly and lower your interest rate. The loan requires a minimum monthly payment savings of $50 to qualify.
Can I apply if I have a low credit score?
Yes, most credit scores are accepted, even underwater borrowers could be eligible. Also another benefit of the USDA Streamline refinance is that your home’s loan to value is not considered. You also have the flexibility to wrap your closing costs and escrow charges in the new loan amount.
Are there other USDA refinance options?
There are two additional types of refinancing offered to homeowners under the USDA.
1. Standard Streamline Refinance program which doesn’t require an appraisal and underwater homes are eligible. However, homeowners must provide current income and meet the debt to income standards. Unlike the USDA Streamline Refinance program, you can not roll closing costs into the new loan. With that being said, most homeowners obtain a Standard Streamline refinance because there is no requirement to drop the payment by $50. Also existing borrowers on the note may be removed if at least on original borrower remains on the loan (i.e. divorce).
2. USDA Non-Streamline Refinance requires am appraisal and the max loan amount is 100% of the homes current value. Income and credit guidelines must be met. Also homeowners can roll closing costs into the new loan. Usually homeowners might use this loan type o avoid the $50 payment reduction requirement for the streamline refinance option