what is usda streamlined refinancing 
usda streamlined refinancing refers to a simplified mortgage refinancing option offered through the u s department of agriculture usda usda streamlined refinancing is intended for homeowners who purchased their homes using a usda issued home loan and provides an option for borrowers to refinance for more affordable loan terms understanding usda streamlined refinancingthe usda loan is a mortgage option for some rural and suburban homebuyers the usda offers home loans directly and guarantees loans issued by qualified mortgage lenders qualification standards for these home loans are lenient compared to those of other mortgages usda loans are designed to help low to moderate income borrowers purchase homes in mostly rural areas a section 502 loan which is a loan available to low income individuals and households in rural areas is one example of this type of loan 1the usda has two programs to refinance direct and guaranteed loans streamlined assist and standard streamlined 2usda refinancing is similar to other federal streamlined refinancing options such as the federal housing administration s fha streamlined refinancing department of veterans affairs va streamlined refinancing and home affordable refinancing program harp from government sponsored enterprises fannie mae and freddie mac 3a streamlined refinanced loan even allows you to wrap your closing costs and escrow charges into the new loan amount that helps homeowners receive a zero out of pocket refinance for which no cash is needed upfront eligibility requirements for usda streamlined refinancingtwo popular usda refinancing programs include the streamlined assist and the standard streamlined program with both programs the refinanced interest rate must be equal to or below the current mortgage loan rate and the mortgage must have closed 12 months prior to the loan application the usda refinancing program known as streamlined assist have the following eligibility requirements unlike a typical loan application there are no credit report home appraisal or property inspection requirements current income is not a qualifying factor either the borrower must only document that their income falls within current usda limits 45another refinancing program includes the usda standard streamlined program similar to the streamlined assist program no appraisal is required and homeowners underwater on their mortgage are eligible the benefits of this particular option include no requirement to drop the payment by at least 50 and existing borrowers listed on the note can be removed as long as one of the original borrowers remains on the loan the latter can be beneficial in the case of divorce 6usda streamlined refinancing ratesto refinance a guaranteed loan check out the usda s list of approved lenders they offer usda loans but the usda does not recommend specific lenders you ll need to shop around to ensure you get the best terms and a lower interest rate 71the interest rate for direct loans as of march 24 2024 is 4 5 but your effective rate can be as low as 1 after subsidies 8