USDA Loans Refinance Funds Now Available
Nov.02, 2009 in
USDA Refinance
USDA Loans ARRA Refinance Funds NOW Available!
The USDA released a Notice of Funding Availability for USDA Loans Refinance Assistance under the American Recovery and Reinvestment Act of 2009.
USDA Loans Refinancing by using ARRA funds is more restrictive than typical USDA Loans.
USDA Loans ARRA Refinance Requirements:
- The 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 the Get Started tab above or click here.
Apply online for a USDA Loan and get pre-qualified today.
Similar Posts:
- Why It’s Time to Refinance Your USDA Rural Home Loan.. Now..
- USDA Loan Guidelines – Loan guarantee limits
- USDA Loan Guidelines – Charges and fees by Lender
- USDA Guidelines – Loan Purposes
- USDA Guidelines – Loan limitations
November 3rd, 2009 at 11:28 am
We had a USDA loan application in Oct. 7th and still haven’t
hear back. A few weeks back we recieved an e-mail stating “USDA Guaranteed Loan Funds Exhausted Effective October 27, 2009″. Is there any projection on when the 2010 funds will be available? Has bill been signed yet? we feel a little in the dark, and any help would be appreciated!
November 3rd, 2009 at 11:52 am
Steven – that’s a good question. If you are buying in Arizona, you can put an application in at the Get Started tab above. I have checked and you have not put an application in with us. Also, while USDA does run out of funds this time of year it is a temporary thing and while most lenders will stop funding USDA we continue to fund the USDA Loans regardless.
November 3rd, 2009 at 1:14 pm
Unfortunately I don’t live in Arizona. But your blog seemed very knowledgeable so I figured I would see if you knew where I could find out about this! Thanks.
April 2nd, 2010 at 12:36 am
USDA Streamline Refinance. How is it different than an FHA Streamline Refinance, and how is it the same?
April 23rd, 2010 at 1:42 pm
@James – They are similar to qualify for an FHA streamline, your existing loan must be FHA. To qualify for the USDA refinance, your existing loan must be a USDA Loan.