USDA Loans Refinance Funds Now Available

  • Sharebar

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 are more restrictive than typical USDA Loans.

Apply for a USDA Loan Online Now: Loan Application

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 on USDA tab above.

Apply online for a USDA Loan and get pre-qualified today.

Similar Posts:

Tagged As: ,

7 Responses to “USDA Loans Refinance Funds Now Available”

  • Steven on November 3, 2009

    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!

  • pauldunn on November 3, 2009

    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.

  • Steven on November 3, 2009

    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.

  • James on April 2, 2010

    USDA Streamline Refinance. How is it different than an FHA Streamline Refinance, and how is it the same?

  • pauldunn on April 23, 2010

    @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.

  • Sveta on April 4, 2011

    We have an USDA Rural Development loan (section 502) at fixed rate for 12 years.
    Does we qualify to refinanse our mortgage for lower rate with the same RD?
    WA state.

  • pauldunn on April 22, 2011

    @ Sveta – We only lend in Arizona. It sounds like you have a Direct loan. You should contact your local Rural Development office for more information.

Leave a Reply

Your email address will not be published. Required fields are marked *