USDA Non-Streamlined Refinancing

AAA

DEFINITION of 'USDA Non-Streamlined Refinancing'

A mortgage refinancing option offered by the United States Department of Agriculture (USDA). USDA non-streamlined refinancing is available to homeowners who purchased their home using a Section 502 Direct or Guaranteed loan. These are loans made available to low-income individuals and households in rural areas. The refinancing option is available in all U.S. states and territories.

INVESTOPEDIA EXPLAINS 'USDA Non-Streamlined Refinancing'

Unlike loans made under the USDA streamlined refinancing program, non-streamlined refinancing mortgages require that the property be appraised. In addition to the principal balance, a non-streamlined refinancing loan can include guarantee fees, accrued interest, lender fees and closing costs if the appraised value of the home is greater than the principal loan amount. However, unpaid fees cannot be included.

USDA non-streamlined refinancing is for a fixed-rate loan with a 30-year term. The interest rate must be lower than the interest rate of the loan being refinanced. A credit report is required. Homeowners do not qualify if they are refinancing a loan offered by the FHA, VA, Fannie Mae or Freddie Mac.

RELATED TERMS
  1. Forbearance

    A temporary postponement of mortgage payments.
  2. Mortgage Modification

    A permanent change in a homeowner's home loan terms that makes ...
  3. No-Appraisal Mortgage

    A type of home loan used for refinancing for which the lender ...
  4. No-Appraisal Refinancing

    A type of mortgage for which the lender does not require an independent, ...
  5. No-Appraisal Loan

    A mortgage that does not require an appraisal of the property’s ...
  6. Home Affordable Refinance Program ...

    A mortgage refinancing program offered by the Federal Housing ...
Related Articles
  1. Insurance Tips For Homeowners
    Insurance

    Insurance Tips For Homeowners

  2. Why You Don’t Need Mortgage Protection ...
    Insurance

    Why You Don’t Need Mortgage Protection ...

  3. Financing Options For Buyers Of Foreclosed ...
    Credit & Loans

    Financing Options For Buyers Of Foreclosed ...

  4. 4 Steps To Attaining A Mortgage
    Credit & Loans

    4 Steps To Attaining A Mortgage

comments powered by Disqus
Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an ...
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center