USDA Refinance Program in FloridaWith no appraisal you can refinance your USDA home loan and reduce your rate.
About the USDA Refinance Program
The USDA refinance program is unequaled in its flexibility to the borrower. There is no appraisal required for starters, and that’s huge for people who bought using the program when housing prices were still on the decline. Additionally the program allows you to roll the closing costs of your new mortgage into the loan! There is no water test required or termite inspection. You could potentially save thousands by utilizing this program.
Do I Still Have to Have Good Credit?
The short answer is no. The program does require that you have no 30 day mortgage late payments within the past 12 months though. You can actually have a credit score in the 500 range and utilize this program. Your credit score will however still affect your interest rate. So be mindful of that. We can finance up to a 1% discount point to try and lower your rate as much as possible.
Florida USDA Rrefinance Program Income Limits
The income limits are still going to be enforced just the same as when you bought your home but up to the current figures. For most areas its about $74,750 for households of 4. For 5 or more the income limit is about $98,000. Call if you are close to these numbers or just over because some deductions do apply! There is one the USDA has zero flexibility on, and its their income limits, and the same goes for USDA refinance program.
Your closing costs will be typical of any refinance with Commerce Home Mortgage. These costs can be financed into your loan though. In some cases we may be able to grant a lender credit to reduce your loan amount. You will not need to come out of pocket 1 dime to get this refinance done.
Its important to know that you will be charged another guarantee fee just like when you bought your home in the first place. Fortunately the USDA has lowered this to 1%, which is down from 2.75%. So keep that in mind when calculating your savings.
The USDA has also implemented a monthly mortgage insurance with an annual factor of .35% based on the principal owed. This was implemented to further the longevity of the program but once again this needs to be factored when calculating your savings. When using the USDA refinance program its important to realize you may be adding mortgage insurance to your loan you didn’t have when originally purchasing your home.
The Bottom Line
Interest rates are currently low enough that even with the mortgage insurance you could potentially save hundreds a month depending on what your current rate is. Over the life of your loan this can add up to 10’s of thousands depending on how much you owe. Please call us for a free mortgage review!