Updates to the USDA Programs

New Streamlined-Assist Refinance Program

USDA recently replaced the Pilot Refinance program with the Streamlined-Assist program.  Highlights of the Streamlined-Assist are as follows:

  • USDA Guaranteed or 502 Direct loans eligible for refinance (conventional, FHA, VA ineligible)
  • Borrower(s) must meet Rural Development income limits
  • The program is available in all states (HomeBridge will offer in all states except Nebraska)
  • Mortgage only credit report for subject
  • DTI not calculated
  • Reserves not required
  • Property does not currently need to be located in a rural area as defined by USDA
  • Closing costs may be included in the new loan amount
  • 2055 exterior-only appraisal (HomeBridge requirement)
  • Net tangible benefit requirement: The new loan PITI payment must be a minimum of $50 less than the PITI payment on the loan being refinanced
  • The new loan interest rate cannot exceed the interest rate on the loan being refinanced
  • Fixed rate 30 year loan term
  • Borrower(s) may be added to the new loan but may not be removed (unless a borrower is deceased)
  • Manual underwriting required

The Streamlined-Assist program is available for loans submitted to HomeBridge on or after October 11, 2016

USDA Upfront Guarantee Fee and Annual Fee – Reduced for all USDA Programs

USDA has announced a reduction in both the guarantee and annual fee for Conditional Commitments issued on or after October 1, 2016 for all USDA loan programs (Purchase & Non-Streamlined, Streamlined Refinance and Streamlined-Assist Refinance)

  • Upfront Guarantee Fee (purchase and refinance transactions): 1.00% of the total loan amount
  • Annual Fee: 0.35% – applicable for the life of the loan

HomeBridge has updated the following documents and posted them on the HomeBridge website at www.HomeBridgeWholesale.com:

  • USDA Purchase and Non-Streamlined matrix and Quick Reference Guide
  • USDA Streamlined Refinance matrix and Quick Reference Guide
  • USDA Streamlined-Assist matrix and Quick Reference Guide
  • USDA Programs Overview
  • USDA Submission forms
  • USDA Rural Development Borrower Questionnaire and Income Eligibility Worksheet

If you have any questions, please contact your Account Executive