Kentucky USDA Rural Housing Mortgage Lender

USDA will allow for a  refinance of your USDA Loan to a non-USDA Loan at anytime in the future, without any penalty for doing so.  However, there are circumstances in which a USDA to USDA Refinance may be beneficial. By refinancing's an existing USDA Loan, homeowners will be able to take advantage of the following USDA Refinance benefits: USDA Refinance available even if the house is worth less than the current mortgage No appraisal report requirement when completing a USDA Refinance of an existing USDA Guaranteed Loan No cash-to-close option for qualified USDA Refinance loan borrowers Can still obtain a USDA Refinance even if the house is no longer in a designated USDA Loan eligible area USDA Refinance Loans allows homeowners with a USDA Guaranteed or USDA Direct Loan to refinance to obtain a lower interest provided the following guidelines are met: Household income cannot exceed current USDA Loan eligibility requirements On-time mortgage payment history within the last 12 mo...

The program requires a minimum of three years from the date of a bankruptcy, foreclosure, or short sale prior to the borrower being eligible for a USDA Loan. For a Chapter 7 bankruptcy, the borrower must allow three years from the discharge date prior to submitting a new loan request. For a Chapter 13 bankruptcy the waiting period is 12 months after the completion of the court ordered repayment plan. If the bankruptcy included a property, whether a primary residence or investment property, the earliest a new loan can be obtained is based on USDA Loan short sale and foreclosure guidelines. When the borrower experienced either a short sale, foreclosure, or surrenders the property through the bankruptcy process, there will be a three year waiting period between the date of property transfer from the borrower to a new entity, and the date the new loan application can be processed. The most conservative stance by a USDA Loan Underwriter for defining the date of the negative occurrence is th...