USDA Offering Refinancing Options for Rural Homeowners

Homeowners who use USDA for their home mortgages will soon be able to refinance more easily to reduce their payments.

Loan Specialist for USDA’s Rural Development’s Single Family Housing Program Trudy Teter said the biggest change is no longer needing a new appraisal done on the home.

“They have to be current on their mortgage. They have to have had their loan closed at least 12 months prior to applying. And then they would go to their approved lender. It is their approved lender that has to manage that program and it’s just guaranteed through our agency.”

Washington State has been part of a pilot program for this refinancing option, but it has now been made permanent by the USDA.

The USDA can help fund 100 percent of a homeowner’s purchase if they are eligible, which foregoes needing a down payment or other initial costs.

Teter said this shows, "There’s still affordable housing available even if you didn’t think there was. There’s affordable products for rural areas.”

For more information on this program, go to the USDA’s Rural Development website.

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