Can You Refinance A USDA Loan?
A USDA loan is guaranteed by the U.S. Department of Agriculture and offers numerous advantages to homeowners. Just like any other mortgage, you can refinance a USDA home loan. While your property must be in a “rural” area outlined by the USDA, you may be surprised at what they deem rural, as many suburban areas may qualify. You can either refinance your current USDA home loan, or refinance a different mortgage type to a USDA mortgage.
Benefits of refinancing with a USDA loan include:
Low interest rate
Since the loan is guaranteed, the rate is typically lower because it’s not tied to your credit score or a down payment amount.
Low private monthly insurance
As of 2023, the upfront mortgage insurance rate on a USDA loan is just 1%, with an annual fee of only 0.35%, which are the lowest numbers of virtually any mortgage program.
The upfront fee can be rolled into the loan, eliminating an out-of-pocket expense at closing.
Flexible credit guidelines
If you have lower credit scores or your credit history isn’t perfect, you may still meet the program’s qualifying requirements.
A USDA refinance loan with PrimeLending is a 30-year fixed-rate, offering lower and more affordable monthly payments. If you’re interested in learning more about refinancing with a USDA loan, contact a local PrimeLending loan officer to get started.