USDA for Purchase and Refinance
What is a USDA for Purchase and Refinance Loan
Some of the restrictions of the USDA loan is that it is only eligible in certain areas in each state. Areas that are restricted are cities with higher populations. The USDA loan also has Income limitations based on the size of the household and the county income averages.
USDA loans are typically used for purchasing new homes but they also have a streamline feature which allows the loan to be refinanced if rates improve. However the refinance can only be used if the existing loan is a USDA home and there are no cash out options.
Who is eligible for this loan?
What are the benefits of this loan?
- No down payment requirements
- Credit Scores as low as 620
- Lower rates and Mortgage insurance than conventional financing
- Streamline refinance option to avoid appraisal and some documentation requirements.