USDA Pilot Refinance Program

USDA has created a “Pilot Refinance Program”  for borrowers located in what are considered the “hardest hit” areas of the country.  The eligible states are Arizona, California, Georgia, Nevada, New Mexico, Oregon and Tennessee.

Eligible borrowers must:

Meet the current income eligibility requirements (not exceed USDA’s income limit based on family size and area the property is located in),  they must reside in an eligible area or an area that was eligible at the time the home was bought, and they must be current on their mortgage for at least the last 12 months.

Other features include:

The new rate must be at least 1% lower than the existing rate on the current loan.

New appraisals or property inspections are NOT required.

Updated credit reports are not required, just proof the last 12 months mortgage payments have been on time.

Closing Costs can be financed into the new loan.

No qualifying ratios are calculated, so there is no “qualifying” for the loan as long as the requirements above have been met.

The expiration date on the program is March 31, 2013. For California home owners, if you would like more information, please feel free to contact me at the e-mail address or phone number below.  If you reside in one of the other eligible states, contact a participating USDA lender in your local market.

Baxter Scruggs is a mortgage banker specializing in USDA loans in California, NMLS #156370. He can be reached at, or at 760-497-7705, or toll-free at 877-347-0004, ext. 226. Licensed by the California Department of Business Oversight under the California Residential Mortgage Lending Act.  The blog postings on this site represent the positions, strategies or opinions of the author and do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Terms and conditions apply, all loans subject to underwriter approval. Subject to change without notice. Guild Mortgage Company NMLS #3274

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