Recently USDA’s Rural Development release a new and improved refinance program. In the past, a homeowner that purchased their home with a USDA Rural Development mortgage could refinance into a new USDA Rural Development mortgage, but had to meet certain requirements, and often had to get an appraisal on their property. This made it nearly impossible for quite a few homeowners to refinance into a new USDA mortgage.
Now, homeowners in Ohio that purchased their home with a USDA Rural Development mortgage can take advantage of historically low interest rates.
Ohio USDA Refinance
Eligible Borrowers
- Must now have a USDA Guaranteed Loan (most homeowners who purchased their home utilizing the services of a bank or a mortgage broker should fit this criteria)
- Minimum 640 credit score
- Must meet current income limits
- Must have made timely mortgage payments for the 12 month period prior to the refinance.
- Must have owned the property at least long enough to provide 12 monthly payments
Overview
- New interest rate must be a fixed rate at least 1% lower than the homeowners current interest rate
- 30 Year Fixed Rate only
- No cash out allowed
- No appraisal required
- Besides the 12 months mortgage payments, all other credit can be disregarded except for tax liens and judgments
- Must verify the borrower(s) to either be employed or receive verifiable alternative sources of income. Must document income for Eligibility Requirements only.
- New loan may only include the principal balance of the current loan, the USDA Rural Development guarantee fee and eligible closing costs.
Required Documentation
- HUD-1 (Settlement Statement), Mortgage and Note from the previous USDA mortgage. You should have received copies of these at your last loan closing.
- 2010 and 2011 W-2s for all members of the household (to verify eligibility)
- Last 2 paystubs for all members of the household (to verify eligibility)
- 2010 and 2011 Federal Tax Returns including all schedules (to verify eligibility)
- Last 2 months bank statements to document any cash needed at closing
Head over to the Ohio Interest Rate Quote request form to receive your FREE, No Obligation rate quote request. Please choose Refinance as the transaction type, and when entering your Required Loan Size please add USDA at the end so that I can offer an accurate quote. If you have any questions on the Ohio USDA Refinance program please contact T.C. Strait at 513-777-8383.
