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Refinancing Program Could Help Thousands of USDA Home Mortgage Holders

L-R: Orlando Housing Authority President Vivian Bryant; Agriculture Secretary Tom Vilsack; Rural Development Florida State Director Richard Machek and Rural Development Florida Single Family Housing Program Director Daryl Cooper participated in a business roundtable in Orlando, Fla., last Friday.  They discussed discuss the USDA Rural Development Home Refinancing Pilot Program which is available to USDA borrowers in 19 states.

L-R: Orlando Housing Authority President Vivian Bryant; Agriculture Secretary Tom Vilsack; Rural Development Florida State Director Richard Machek and Rural Development Florida Single Family Housing Program Director Daryl Cooper participated in a business roundtable in Orlando, Fla., last Friday. They discussed the USDA Rural Development Home Refinancing Pilot Program which is available to USDA borrowers in 19 states.

When most people think of Orlando, Florida, they envision exciting theme parks, Cinderella’s castle and a mouse with big ears.  But when USDA Secretary Tom Vilsack visited Orlando on February 24th, it was with a different vision in mind.

Families throughout the country have felt the effects of a tough economy, and none more so than homeowners living in what have been called the “hardest hit states” – states hit hard by the economic and housing market downturn.  On February 1, 2012, Secretary Vilsack announced a Rural Development pilot program in 19 states designed to help rural borrowers refinance their mortgages at today’s historically lower interest rates to reduce their monthly payments.

The agency estimates that this program could benefit up to 20,000 Florida homeowners who have USDA financed or guaranteed mortgages. And nationwide, the number rises to over 237,000 families. By utilizing the new refinancing pilot programs, homeowners can take advantage of the streamlined program that eliminates the requirement for a new appraisal, inspection, credit report and other documentation normally required in a refinancing.

In Orlando on February 24th, Secretary Vilsack hosted a roundtable with local homeowners and lenders to discuss these efforts to assist families whose home loans are either financed or guaranteed by Rural Development.

Three Florida families whose homes are currently financed by Rural Development were on hand for the discussion.  Each family spokesperson expressed his or her appreciation of the homeownership opportunity they realized with assistance provided through Rural Development housing programs.  And each family was interested in looking into the streamlined refinancing program as a way to secure lower monthly payments while protecting their homeownership investment and adding money back into their monthly budgets.

The two-year pilot program is open to homeowners in Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Rhode Island, South Carolina and Tennessee.  USDA Rural Development home loan borrowers who would like to participate in this pilot should contact their lender or a USDA Rural Development office for a list of participating lenders. For more information contact any USDA Rural Development State or Area office.

 

30 Responses to “Refinancing Program Could Help Thousands of USDA Home Mortgage Holders”

  1. Maria Fernandez says:

    I leave in New Mexico Can this program help me to lower my morgage interest? Iam currently paying 8% or how else this program helps me

  2. Maria Fernandez says:

    Can you send me a list of lenders partipating in this program?
    Thanks

  3. jl says:

    Are lenders offering this now?

  4. Ernest Martinson says:

    I assume Rural Development’s pilot program involving the elimination of requirements for a new appraisal, inspection, credit report, and other documentation is because this documentation is truly redundant in the refinancing. Otherwise it would only be more of the same antics contributing to the original housing bubble.

  5. Stuckin Florida says:

    More lenders should adopt this approach.

  6. Alex Rotolo says:

    This is great news. Responsible homeownership should be a priority for our leaders. ENTITLE DIRECT is running a campaign to advocate for responsible homeownership with their Million Key Cause. They are collecting keys to advocate for legislation that will help current and future homeowners. https://www.entitledirect.com/register/facebook/key_cause_landing_page.jsp

  7. Wayne Maloney says:

    Ms. Fernandez and anyone else wanting information about the program and about participating lenders should contact their State rural development office. The list is at: http://www.rurdev.usda.gov/StateOfficeAddresses.html

    Wayne Maloney
    USDA

  8. Karen Adams says:

    I live in Cullman, AL and need a list of local companies that can handle the refinance. Thank you.

  9. A. Simler says:

    I really wish this program was available in all states, not just a select few. Is there a timeline for when the USDA refinancing will be available for the rest of the country?

  10. Rachel Fairley says:

    I started requesting loan modification help last june. My mtg holder has not sent me any confirmation that it is being processed. Bank of America is my loan holder and I am underwater”. I have called several times and have continued my mtg payments, I wonder what I could do to get this finalized?

  11. Brian Franklin says:

    I have been a loan officer for 6 years. We have been specializing in USDA financing for the last 3 years. This program is great.

  12. Tom Richter says:

    Why is this not available in Wisconsin?? My area is as rural as they come. The only traffic jam here is waiting for the cows to cross the road.

  13. Stephanie S says:

    Hi Brian F., I am having trouble finding anyone that knows what to do with this program. I have a loan through USDA and I owe more than my house is appraised at. I cannot refinance into a new loan because of that. I would like to know how to get in touch with someone who knows about this program. You said you are a loan officer, should I ask a loan officer about it or rural housing who my loan is through? Thanks!

  14. Linda says:

    My lender says that with this program there is a $3427.11 Rural Guarantee fee due up front and $52.00 additional cost every month? This along with the closing costs makes my loan financing go from $208,400 to $218,000. And, we have excellent credit. Are these fees valid?

  15. Jim Chambers says:

    I found this – but they only refinance Florida USDA loans – http://usdamortgagesource.com/blog/new-usda-refinance-program-relief-for-homeowners/

  16. Regina frankin says:

    I received a notice in the mail in ref to this program which provide a phone number. I have completed my paperwork and it is with the underwriters..it took less than a week..

  17. John says:

    Mr. Maloney,

    How where the states chosen that are able to participate in the program?

    Thanks for your time.

    John

  18. Justin Messer says:

    I have been providing USDA home loans for years and have to say that it is a blessing that we now have this streamline refinance in Georgia. This pilot program is already helping so many people.

  19. mark m says:

    i live in kissimee, florida and cannot seem to find anyone who can assist me with this program, especially my lender. please help me.

    thanks, mark m

  20. Stacey says:

    Is there any hope of this coming to additional states? New York perhaps…between the original loan and the ‘recapture’ that the house owes I have no hope of refinancing.

  21. lori collins says:

    I have a USDA loan. I am in Georgia and would like to refinance for a lower interest rate. I thought you had to wait 3 years before doing this. Is that right?

  22. mark blalock says:

    i am currently trying to modify my mortgage with chase due too a hardship, what is the timeline for this process and who do i
    contact with this ne program with usda

  23. Amanda says:

    If you refinance with the Pilot program do you have to go back to a 30 year loan?

  24. Jerry White says:

    I live in Oklahoma. Is this refinancing program eligible for people in our state. I owe more on my house than the current value.

  25. Michael Allen says:

    I live in Iowa with a USDA loan, it sure would be nice if they expanded this to all states, it would save me a couple thousand a year.

  26. Carol says:

    Why isn’t it for every state that has a USDA loan I am underwater behind and be trying to work with chase in mn and no such luck and it was because of a hardship for a medical condition please help

  27. Jason Letford says:

    Carol,
    They did recently expand the Pilot program to a bunch of other states. You may want to check this post I found to see if you state is included now – http://www.trulia.com/blog/usda_mortgage_source/2013/02/usda_rural_housing_expands_pilot_refinance_program

  28. Sumterwright says:

    I live in South Carolina I lost my job on August 1st 2012. Fell on really hard times Filled out all my paperwork the same week, Sent it to my mortgage company which is US Bank Home Mortgage It has been over a year and They are still requesting updated information from me,the exact same paperwork and information,updated bills pay stubs. I have sent them the same information over 10 times bc they had allowed my paperwork to expire before it was sent to the underwriter. As of today which is August 16th 2013 ,I still haven’t seen any relief from my mortgage company. I call and I speak with member of management and they tell me that they are waiting on USDA. This Is unreal They call me every now and then just to let me know that the process is still in the same state that it was in last year.I have never experienced any hardship with them before . But now I am completely Lost they tell me the same thing every time I call. I am struggling to send a payment when I can. This has been the most frustrating ridiculous process circle I have ever experienced in my entire life, I would not wish this on my worst enemy, if there is someone out there that can help me PLEASE help me. I don’t know what else to do. I dont know who I can contact about this. I am afraid im going to lose my home.The company is US Bank home mortgage. Somebody anybody please help. Thank you!

  29. mortgages says:

    This is great news.I really wish this program was available in all states.

  30. Joyce says:

    I have had a USDA loan for over three years and have asked for help when my mom left to stay with my sister, which lowered my income. They said I was getting the limit in help. So under unforeseen circumstance, I went one month behind and fought to get caught up, but every time I asked for help to get caught up, they kept telling me I had to go two months behind, which I did not want too, but after about a year, I finally had to in order to get caught up and that really did not help cause it cost me hardship, but I am almost done with the back payments being caught up. I asked about a modification and they said they do not do that. A modification would really help me and maybe I can get off the extra help. This is my dream and I will go with out in order to keep it. I am on disability and retirement from my job, so I only make so much and I am really hurting just to stay a float. I honestly believe due the fall out of the home sales, my home is worth less than what I owe on it. Why want they help people like me and others who really need the help.

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