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Overview

If you have a USDA loan, you may be eligible for a USDA streamline refinance. Streamline refinancing lets you replace your current USDA loan with a new USDA loan that has a lower rate or better terms. With no home appraisal or income verification needed and easier credit qualifications, you’ll enjoy a faster closing and less paperwork.

Use our helpful mortgage refinance calculator to estimate how much you might save on your monthly payment. By refinancing, the total finance charges may be higher over the life of the loan.

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Lower rates

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Easy credit terms

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Less paperwork

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Faster closings

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Ask us what USDA streamline rate we can offer you!

The USDA rate we may be able to offer is personal to you. Your rate is affected by your credit score, your income and finances, and the current mortgage market environment. Freedom Mortgage may be able to offer you a rate that is lower – or higher – than the rate you see advertised by other lenders. Ask us today about our competitive USDA rates!

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Is a USDA streamline refinance right for you?

To take advantage of USDA streamline refinancing, you need to have a current USDA loan and replace it with a new USDA loan. You can also refinance a USDA loan with a conventional loan. To learn more about your loan choices, see our comparison below. Freedom Mortgage offers refinancing with conventional, FHA, and VA loans as well as USDA loans.

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USDA Streamline Refinances

  • Only USDA loans are eligible
  • Application requires less paperwork
  • Mortgage insurance required
  • Closing usually takes less than 30 days
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Conventional Refinances

  • All loans are eligible
  • Application requires more paperwork
  • Mortgage insurance required with home equity less than 20%
  • Closing takes more than 30 days
Learn More
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VA IRRRL Streamline Refinances

  • Only VA loans are eligible
  • Application requires less paperwork
  • Easy credit qualification
  • Mortgage insurance not required
  • Closing takes more than 30 days
Learn More
FHA Icon

FHA Streamline Refinances

  • Only FHA loans are eligible
  • Application requires less paperwork
  • Easy credit qualification
  • Mortgage insurance required
  • Closing takes less than 30 days
Learn More

Looking for more detail?

Our full loan comparison table can help you decide.

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USDA streamline fees and requirements

To be eligible for a USDA refinance, you’ll need to meet the eligibility requirements set by the U.S Department of Agriculture. You will need to complete an application and meet your lender’s credit, income, and financial standards. You’ll have to pay closing costs too. Here’s what else you need to know about USDA streamline refinancing.

Less documentation

USDA streamline refinancing requires less paperwork than other types of refinances. That means no requirements for credit review, home appraisal, or home inspection in most cases.

Credit scores

We will probably check your credit score before we approve your refinance. Your credit score can affect the interest rate we may offer too.Learn about mortgage credit scores

Upfront guarantee fee

You need to pay an upfront guarantee fee equal to 1% of the loan amount when you streamline refinance a USDA loan. You can pay this fee in cash at closing or add it to your mortgage amount.

Annual guarantee fee

You also need to pay an annual guarantee fee equal to 0.35% of the remaining principal balance with USDA streamline refinances. The annual fee is included in your monthly mortgage payment.

Closing costs

USDA streamline refinance closing costs vary by lender and may include lender fees, discount points property taxes, homeowner’s insurance premiums, and more.

Loan disclosures and closing

Once you submit your USDA streamline application, you’ll need to review and sign loan disclosures and attend your loan closing. In many cases, Freedom Mortgage can close a USDA streamline refinance in 30 days or less.Learn about the closing process

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A USDA streamline refinance replaces your existing USDA loan for a new USDA loan with a better interest rate or terms. Refinancing your USDA loan may also help you lower your monthly payment. USDA streamline refinances do not require a home appraisal or income verification, and closing typically takes less than 30 days. Keep in mind by refinancing, the total finance charges you pay may be higher over the life of the loan.

  • Better rates. Refinancing can help lower your interest rate. See how much you might reduce your monthly payment or save in interest with our refinance calculator.
  • Improved loan terms. Shorten the life of your loan or switch to a fixed-rate mortgage.
  • No home appraisal or inspection. You’ll save time and money since both a new home appraisal and property inspection won’t be necessary in most cases.
  • Fewer limits. You won’t need a credit check or have your debt-to-income ratio (DTI) calculated.
  • Quick closing. Since USDA streamline refinances have fewer requirements and documentation involved, you’ll experience a fast and simple closing.

You cannot get cash from your home equity by refinancing your USDA loan. If you would like to get cash for your home equity and you currently have a USDA loan, you will need to refinance to a conventional loan. Conventional cash out refinancing replaces your existing mortgage for a new loan with a higher amount. When you close, you receive the difference between the two loans in cash. Learn more about cash out refinancing.

  • You currently have a USDA loan. You can only refinance into a new USDA mortgage when you have a current USDA loan.
  • The house must be your primary residence. Your refinanced USDA loan must be for the house you live in regularly.
  • Your current USDA loan is at least a year old. This means at least 12 months have passed since your first payment due on your current USDA loan.
  • Timely mortgage payments. You need to have made your last 12 mortgage payments on time.
  • There’s a financial benefit. USDA rules require that you see at least a $50 per month savings in your payment to be eligible for streamline refinancing.
  • Meet the income limits. USDA streamline refinances have income limits. Visit the USDA website to check if your income meets these limits.
  • No cash out. USDA streamlines are for rate and term refinances only, so you cannot take any cash out of your new loan.

The Freedom Mortgage Difference

We are committed to making you a life-long customer with exceptional mortgages and exceptional service!

We’ll help you choose the right mortgage and work with you to make buying a home or refinancing easy. We'll also keep an eye on your rate and let you know when you can lower your payment or get cash from your home's equity.

We are thankful for our 1.5 million customers. It’s because of homeowners like you that we’ve grown over the past 30 years to become one of the top lenders in America.

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