Refinancing Tips · April 21, 2025
USDA Streamlined Assist Refinance: Your Options as a USDA Borrower
USDA borrowers have access to a streamlined refinance program similar to FHA Streamline. Here's how it works and who qualifies.
If you have an existing USDA loan and want to lower your rate, the USDA Streamlined Assist Refinance offers a simplified path.
Key Features
- No appraisal required
- No credit score requirement (no minimum imposed by USDA)
- No income verification (household income not checked)
- No DTI calculation
- Must be current on mortgage (no 30-day lates in past 12 months)
- New payment must be at least $50 lower than current payment (the "net tangible benefit")
Eligibility Requirements
- Must have a USDA Guaranteed or Direct loan
- Loan must be at least 12 months old
- Must have made all payments on time for 12 months
- Property must remain in an eligible USDA area
- New loan cannot be more than the current principal balance plus closing costs
What You Cannot Do With Streamlined Assist
- Take cash out (no cash-out option on USDA refinances)
- Remove a borrower from the loan
- Add a new property or change property type
USDA Non-Streamline Refinance
A standard USDA refinance (non-streamlined) requires full income and credit documentation but allows borrowers who don't meet the streamline criteria. Rate-and-term only.
Timing Considerations
USDA Streamlined Assist requires lender participation. Not all lenders offer it — but HMS processes USDA refinances regularly.
Call 309-222-8286 to check if your USDA loan qualifies for a streamline.