Today Palm State Mortgage is bringing information to all our readers interested in refinancing. The USDA Pilot Refinance is a refinancing program that is saving thousands of Florida home-owners hundreds of thousands of dollars.  It allows rural homeowners to refinance their mortgage into today’s lower interest rates, in spite of the home-to-loan value. If you are “upside down;” if you are “under water;” if you are struggling financially to meet your current USDA loan responsibility; you might qualify to utilize this program. The program has some very attractive features:

Money In Your Pocket…This program minimizes out-of-pocket expenses. It is possible to include closing costs in the new USDA mortgage.

The Essential Qualification…To be eligible, you must have a current direct USDA rural housing loan or a USDA 502 Mortgage. There are other programs for owners of conventional loans or FHA loans

Are You Worried About That Red Tape?…The Florida USDA Pilot Refinance program will streamline some of the arrangements seen with traditional bank refinancing. The program could remove hundreds of dollars from your monthly budget.

Are You Conscientious?…You must prove that you have paid your loan payments for 12 consecutive months, steadily and on time.

You can read more details about this program here. Experts have estimated that there are more than 20,000 potentially qualified borrowers in Florida. If you live rurally, outside of Tampa, Jacksonville, Tallahassee, Lakeland, Ocala, Gainesville or our home base, Orlando, virtually any rural area of Florida, you might be  eligible. Of course, there are a few qualifications you must observe:

  1. Got wheels?… We are sorry to tell you that mobile or “manufactured homes” are not eligible.
  2. The Time Limit…Your new loan must be a 30 year fixed rate mortgage.
  3. The Price…Depending on your situation, the USDA guarantee fee will be 1.50% to 2.00%, but it can financed within the new loan. Plus, the USDA annual/monthly fee will be .30%
  4. The Summary…Using the USDA Pilot Program, your new loan usually includes the principle balance of the existing loan, plus the upfront USDA guarantee fee of 1.5% (or 2.00%), and all your closing costs.
  5. The Forbidden…No cash out is allowed with this refinance program.
  6. Your Personal Guarantee…You will verify the income all adult household members.(There are limits.)
  7. Your Hard Work…Borrowers must be employed at the time of closing on the refinance. They also accept other sources of income, such as: retirement income, social security income, disability income, alimony, or child support.

Remember, as we have stated, there is no limit on the loan to value ratio. (LTV) If you are one of the thousands of rural home owners who have endured the heart break of seeing your home become worth less than you still owe, it is still possible to qualify for the program. In fact, it was designed for those of you who have lost equity in your home due to the recent Florida economic difficulties. The USDA Rural Pilot Refinance  program recognizes that many of you have been denied the new low interest rates because of the deprecation in home values, and the equity restrictions enforced by some lenders.

By the way, if you have a Fannie Mae or Freddie Mac conventional home loan, you can refer back to one of our blogs concerning HARP 2.0. Click here to read more about the USDA Pilot Program. You might be very glad you checked it out!

Of course the title of our blog is just a witty comment, because this USDA Rural Pilot program is not about pilots. However, it could “fly” you and your family into more financial stability and freedom. Again, we thank you for reading our blog, and we hope you will help us spread the word about USDA Rural Pilot Program refinancing to all your rural friends on the Internet. Just click a button below, and share.