NC Residents are getting an added benefit from the Obama Administration during the next 24 months. In a program announced for the economically hardest hit counties in the Country, last week USDA announced a new Streamline Refinance Program!
Under the new program folks refinancing their USDA Home Loan will need to meet the following guidelines:
- No appraisal required – the current residence must be in a USDA “Footprint Area” and currently be insured under the USDA program. So refinancing from a Conventional loan or a FHA loan to USDA will not work under this program.
- No Credit Report Required – the current mortgage must be current, and all of the previous 12 months of mortgage payments need to be made on time. That’s all. We just verify that you made your house payments on time.
- Employment Verification Required – we will need to verify that you are employed, and drawing enough money to meet the underwriting guidelines… meaning we must prove that you have enough income to make your house payments.
- Can not take cash out – All we can do is finance your current loan balance, and the new Guarantee Fee (PMI) which is 1.5%.
This should be a pretty quick process! We just did a comparison for a homeowner who purchased their home in June of 2009 in Johnston County. Their current interest rate is 5.75%. Even with the change in the USDA Guarantee fee (now there’s monthly PMI for USDA Home Loans) they are saving over $130 a month, and we are not having to charge them ANYTHING! So the balance on their mortgage isn’t changing much, and they don’t have to worry about an appraisal… and they get to skip a mortgage payment and lower their house payment by $130 (and change) a month! WHAT A DEAL!
If you want to see if you qualify for this program in NC – call Steve Thorne, USDA Home Loan Expert in NC 919-649-5058. We have the best mortgage rates available, and we know how to work with USDA!