The USDA Pilot Refinance Program is a great mortgage product
for borrowers looking to refinance their current USDA loan where limited or no
equity is not an issue.Â Effective February 11, 2013 the following states
will now be eligible for the USDA Pilot Refinance Program:
Alaska, Alabama, Arkansas, Arizona, California, Colorado,
Florida, Georgia, Idaho, Illinois, Indiana, Kentucky, Kansas, Michigan,
Missouri, Mississippi, Montana, North Dakota, Nevada, New Jersey, New Mexico,
North Carolina, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, South
Dakota, Tennessee, Texas, Utah, Washington, Wisconsin, West Virginia.Â All
other states not listed remain ineligible at this time but would be eligible
for a streamline USDA refinance.
USDA Refinance Pilot
The following must be met to be eligible for the USDA
Refinance Pilot Program:
Minimum FICO credit score requirement is 620
Interest rate on the new loan must be a minimum
1.00% lower than the existing USDA loan.
Subject property must be located in one of the
eligible states listed above and in eligible area
Refinance Pilot loans are manually underwritten
Borrowers may be added BUT not removed (unless
Appraisals are not required.
The new loan (LTV) is based on the current
transaction (original loan amount and original appraised value are not
Upfront USDA Guarantee Fee is 2.00%
Annual Fee is 0.40%
NO CASH OUT PERMITTED
Unpaid fees to the current servicer that may be
included in the payoff may not be financed into the new loan.
Reasonable and customary closing costs and other
fees may be collected from the borrower by the originating lender.
Origination fee charged to the borrower may not
exceed 1% of the total loan amount whether the fee is borrower paid or lender
New loan may include the principal balance of
the existing loan, accrued interest, eligible closing costs, and the guarantee
Fully executed RD Form 1980-21 Request for
Single Family Housing Loan Guarantee is required.
Income verification for all adult household
members is required for income eligibility determination only, not for
determining repayment ability.
All borrowers must be currently employed as
verified through a verification of employment
To apply for a refinance of a USDA loan with the special
program, contact Russell Smith or Bob Moyer today at 910-914-0655.