What is the USDA Streamline Refinance Home Loan Program in California?
The USDA Streamline Refinance loan program for homeowners with an existing USDA loan. The program was made available to the public in 2012. With this loan program, the borrower(s) are required to supply and document all income coming into the household, just like the USDA purchase process was. The benefit to the program is that there is no appraisal report required, saving money and time with the refinance process. In addition, if the value of the home is underwater, the borrower can still qualify for the refinance as long as the income and credit are within guidelines.
The USDA Streamline Refinance home loan in California reduces the steps in qualifying such as fast underwriting times and a typical loan process time of 3 to 4 weeks of initial loan application. This program has helped many homeowners with existing USDA loan gain access to lower their overall monthly mortgage payment.
USDA Streamline Requirements:
- Existing USDA loan to a new USDA loan
- No Cash Out, Rate and Term only - if looking to take cash out to pay off debt or do some improvement, we will need to look at other programs that will allow for cash out such as the Conventional, FHA or VA home loan programs
- Subject property must be owner occupied - if the property is a rental now, the USDA streamline loan is unavailable
- 30 Year Loan only - refinancing to a 20 or 15 year term is not available, the program was designed to lower the overall mortgage payment
- Interest rate reduction guideline - the new interest rate must be 1% lower than existing rate, example: your current USDA interest rate is 5% then the new rate must be at 4% or lower on a 30 year fix term
- Property location. If the property was in an eligible area before determined by USDA, but is now no longer in the eligible area, the loan is still lendable for a refinance
- Mortgage Payment history - must have 12 months of time payment at the time of refinance
- Income requirements - the USDA loan program has an income requirement based on dependents in the household and this holds true when refinancing as well, so if your household is making more money now then when securing the USDA home during the purchase process this refinance option may be unavailable this time around
I welcome the opportunity to speak with you about a USDA Streamline refinance home loan here in California. My goal is to ensure we meet your goals with a refinance by lowering your overall monthly mortgage obligation. The loan process is one of the smoothest streamline refinance programs available to existing USDA loan homeowners. Call me direct at 909-503-5600 to review this refinance option.