If you purchased your home through the USDA home loan program and you are currently looking into refinancing that home, then you may want to read the information in this writing about the USDA streamline refinance program. You may find that this program awards you the features that you would want a refinance program to have. You can learn about the basics of the USDA streamlined refinance program, as well as answers to some of the most commonly asked questions about the program below.
Basic information about a USDA streamline refinance
This refinance program makes it easier than many other programs for people to refinance their homes who would otherwise find that the qualifications are hard for them to meet. There are certain qualification standards that must be met for one to be qualified. A few examples of these qualifications include currently having a USDA home loan on the home, having a year's worth of on-time payments, living in the home currently, and meeting the income requirements. Here are some of the questions that a lot of people who are thinking about getting a refinance through the program may have and the answers to them:
Can you qualify if the home is no longer in a region that is USDA eligible?
As long as your home was purchased under the USDA program and still holds that USDA mortgage it will qualify; it doesn't matter when the region stopped being USDA eligible.
Can you be eligible for the program when renting to relatives?
No, the home needs to be your primary residence. Even if you are related to the person(s) who are currently occupying the home, you will be disqualified if you are not living in the home yourself.
Can you qualify for the program if you now make more money?
If you currently make more money than what is deemed to be the maximum allowable limits according to the USDA, then you won't be eligible for the program. In fact, the combined income of the household must not exceed those limits, and this also includes the income of children in the home.
Why does the lender ask for proof of income if you don't have to prove payment worthiness?
You are not required to show proof of your income in order to qualify, but you do still need to show it. The reason the lender needs to see proof of income for all income earners in the household is to verify that you are in fact eligible for the program and that your income doesn't exceed the limits.
For more information about USDA streamline assist, contact a professional.