Many people have bought their homes using Section 502 loans. These loans were originally designed to help people buy homes in rural areas. If you own a home with one of these loans, then you are probably eligible to refinance the home through the USDA. The USDA allows people to refinance at a lower interest rate, so that they will be better equipped to pay off their loan.
If you are looking to refinance through the USDA, then you have several options. Your first option is to streamline refinance your loan. This refinancing option requires absolutely no appraisal, but it can only be used to finance the total balance of your loan. Some refinancing options allow you to refinance the closing costs, but this option does not allow you to do that. Streamline refinancing is a wonderful option if you are looking to save money on interest.
The next option is to Non-streamline refinance. The first step for this type of refinancing is to get an appraisal of your home. This is done to figure out the property value and whether it will support your new loan amount. In this option you can choose to finance all of the closing costs up to the value of your property. If you are looking for a way to pay for your closing costs, then you probably will appreciate using the Non-Streamline option.
The USDA also has a couple of other pilot programs for refinancing. For the most part these programs probably do not apply to you, but if you are looking to use one of these programs they are fairly easy to research. Check out the USDA website if you have any further questions about any refinancing programs through the USDA.
The USDA is trying to keep as many people in their homes as possible. There refinancing programs are extremely generous and are a wonderful way to receive a lower interest rate and help save you money. If you would like to save money on your mortgage payment, then you have to check out the refinancing options that you have through the USDA.