There is a lot of talk these days about refinancing home loans. If you’ve watched TV or listened to the radio at all lately, you’ve probably heard commercials regarding mortgage refinancing. However, if you have a USDA loan, you may think that this option doesn’t apply to you.
In reality, that is not the case. Like most other mortgages, it is possible to refinance a USDA loan. However, because of the unique nature of the USDA loan, refinancing isn’t the same as it would be with any other loan.
In recent years, the USDA has made refinancing USDA loans easier, with a USDA Streamline Refinance program. The process is considered streamlined because much of the information you used when applying for your loan can be utilized during the refinance process--saving time and effort.
What Requirements Must Be Met for a USDA Refinance
While you should talk to your lender about the specifics, some of the basic requirements include:
- The mortgage must already be a USDA loan
- The mortgage must not be delinquent
- The refinance will need to lower the monthly payment
- No cash may be taken out during the refinance process
- The past 12 payments should have been made on time
The most important thing to remember is that refinancing a USDA loan does have certain special requirements and it may take a little more work. That’s why it is vital that you work with a mortgage company that understands USDA loans AND one that is comfortable handling the refinance process. Here at First Liberty Financial Mortgage in Owensboro Kentucky, we have the knowledge and expertise necessary to help you with anything related to your mortgage--be it applying so you can buy your first home or refinancing a loan you had for years. Our refinance experts are just a phone call away.