Refinancing loans is a hot topic these days. You’ve probably heard commercials for mortgage refinancing on TV or radio recently. But if you have a USDA loan, you might think this isn’t an option.
In reality, it isn’t like that. It’s possible to refinance a USDA loan. However, because USDA loans are unique, refinancing is not as simple as refinancing other loans.
The USDA has made refinancing USDA loans easier in recent years. You save time and work by using much of the information you provided when applying for your loan.
Requirements for USDA Loan Refinancing
While you should discuss the specifics with your lender, the following are some of the essential requirements:
- The USDA loan must already be in place.
- The mortgage must not be in arrears.
- The refinance must result in a lower monthly payment.
- During the refinancing procedure, no cash can be taken out.
- The previous 12 payments were supposed to be made on schedule.
The most important thing to understand is that refinancing a USDA loan has some unique restrictions and may need additional effort. That is why it is critical that you engage with a mortgage firm that is familiar with USDA loans as well as the refinance procedure. At Liberty Financial in Louisville, Kentucky, we have the experience and skills to assist you with every aspect of your mortgage, whether you’re applying for a first-time home loan or refinancing a loan you’ve had for years.