USDA Non-Streamlined Refinancing


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.

BREAKING DOWN '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.

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  1. Do FHA loans have prepayment penalties?

    Unlike subprime mortgages issued by some conventional commercial lenders, Federal Housing Administration (FHA) loans do not ... Read Full Answer >>
  2. Can FHA loans be refinanced?

    Federal Housing Administration (FHA) loans can be refinanced in several ways. According to the U.S. Department of Housing ... Read Full Answer >>
  3. Can FHA loans be used for investment property?

    Federal Housing Administration (FHA) loans were created to promote homeownership. These loans have lower down payment requirements ... Read Full Answer >>
  4. Do FHA loans have private mortgage insurance (PMI)?

    he When you make a down payment from 3 to 20% of the value of your home and take out a Federal Housing Administration (FHA) ... Read Full Answer >>
  5. How many FHA loans can I have?

    Generally, the Federal Housing Administration (FHA) does not insure more than one mortgage per borrower. This is to prevent ... Read Full Answer >>
  6. Are FHA loans assumable?

    Loans insured by the Federal Housing Administration (FHA) on or after Dec. 15, 1989, are assumable by qualifying borrowers. ... Read Full Answer >>

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