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- USDA Streamline Refinance: This program is designed to allow borrowers with an existing USDA loan to refinance without a new appraisal, credit check, or income verification. This can be a quick and easy way to lower your interest rate and monthly payment.
- USDA Cash-Out Refinance: This option allows you to refinance your current USDA loan for more than the outstanding balance and receive the difference in cash. This can be a good option if you need money for home improvements, debt consolidation, or other expenses.
To be eligible for either type of USDA refinancing, you must currently have a USDA loan and meet the program’s credit and income requirements. It’s best to contact a USDA-approved lender to discuss your options and determine which type of refinancing is best for your needs.
Yes, it is possible to refinance out of a USDA loan and into another program. However, the specific options available to you will depend on your individual circumstances, such as your credit score, income, and the amount of equity in your home.
One option you may want to consider is refinancing into a conventional loan. Conventional loans typically have more flexible eligibility requirements and may offer lower interest rates than USDA loans. However, you may need to meet certain credit and income requirements to qualify.
Another option is to refinance into an FHA loan. FHA loans are backed by the Federal Housing Administration and can be a good option if you have less than perfect credit or a limited amount of equity in your home. However, you will need to pay mortgage insurance premiums with an FHA loan, which can increase your monthly payment.
It’s important to note that refinancing out of a USDA loan may require you to pay a prepayment penalty or other fees. You should also consider the costs associated with refinancing, such as closing costs, when deciding whether to refinance. Contact us at (888) 767-0554 to discuss your options and determine which program is best for your needs.