USDA Streamlined Refinancing

AAA

DEFINITION of 'USDA Streamlined Refinancing'

A mortgage-refinancing option offered by the United States Department of Agriculture (USDA). USDA streamlined refinancing is available to homeowners who purchased their home using a Section 502 loan, which is a loan 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 Streamlined Refinancing'

USDA 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. The USDA does not require an appraisal on a streamline refinance, but does require a credit report to be available.

The property being refinanced must be the borrower’s primary residence, but does not have to be located in a currently eligible rural area. Homeowners do not qualify if they are refinancing a loan offered by the FHA, VA, Fannie Mae or Freddie Mac.

The phrase “streamline refinance” refers to the reduced amount of paperwork and underwriting that the lenders must work with.

RELATED TERMS
  1. Interest Rate Reduction Refinance ...

    A mortgage refinancing program offered by the U.S. Department ...
  2. No Cash-Out Refinance

    The refinancing of an existing mortgage for an amount equal to ...
  3. Short Refinance

    The refinancing of a mortgage by a lender for a borrower currently ...
  4. Forbearance

    A temporary postponement of mortgage payments.
  5. Mortgage Modification

    A permanent change in a homeowner's home loan terms that makes ...
  6. USDA Non-Streamlined Refinancing

    A mortgage-refinancing option offered by the United States Department ...
Related Articles
  1. How Mortgage Refinancing Affects Your ...
    Credit & Loans

    How Mortgage Refinancing Affects Your ...

  2. Re-Amortizing Or Refinancing Your Home
    Home & Auto

    Re-Amortizing Or Refinancing Your Home

  3. Mortgage Refinancing: Finding the Right ...
    Home & Auto

    Mortgage Refinancing: Finding the Right ...

  4. When (And When Not) To Refinance Your ...
    Home & Auto

    When (And When Not) To Refinance Your ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center