Friday, August 23, 2013

Two options for refinancing current Kentucky Rural Development USDA loans are available:

Together we are commitmented to Kentucky Rural Development Housing Communities


Two options for refinancing current Kentucky Rural Development USDA loans are available:

Non-streamlined refinance -  

·         Requires an appraisal that must met HUD Standards for Kentucky Rural Home Loans
·         Non-streamlined refinance  -  may include in the new loan – current principal and interest of the existing loan, closing costs, lender fees and the guarantee fee of 0.5 percent of the loan amount provided  there is sufficient equity in the property.  (determined by an appraisal)
·         The appraised value may be exceeded only to the amount financing represents the 1 percent guarantee fee
·         The Guaranteed Underwriting System (GUS) may be utilized when requesting a non-streamlined refinance
Streamlined refinance - 
·         Streamlined  due to no need for obtaining a new appraisal
·         All other costs, documentation and underwriting requirements remain consistent with a purchase transaction – full documentation loan
·         Loan amount consist of the principal balance of the existing loan. The loan amount cannot exceed the principal amount of the existing loan refinanced plus the one time guarantee fee of 1 percent of the loan amount. (This option is not available for current Section 502 Direct loans)
·         Accrued interest, closing costs or lender fees cannot be financed with this option
·         Lenders must manually underwrite
·         GUS may not be utilized when requesting a streamlined refinance