Rural home owners are getting a chance to refinance their mortgages, and reduce their monthly payments, thanks to a program from the USDA dubbed the “Single Family Housing Guaranteed Rural Refinance Pilot Program.” Part of the Obama Administration’s ongoing initiative to assist middle class families while strengthening our economy overall, 19 states will take part in the USDA program that will help an estimated 235,000 eligible rural home owners refinance their current mortgage.
Eligibility requirements are reasonable and designed to streamline the process of obtaining a refinanced rural home mortgage:
- Borrowers must have made all mortgage payments on time for the last 12 months.
- NO new credit reports, property inspections or home appraisals are required.
- Refinanced loans must be at interest rates below the original.
- Terms cannot exceed 30 years.
- No cash out permitted to the borrower.
The pilot program is initially set to run for two years (and possibly longer, depending on a review and appraisal of its effectiveness), and is open to homeowners in Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Rhode Island, South Carolina and Tennessee.
Oregon home owners in eligible rural areas such as Lebanon, Dallas, Monmouth, Independence, Stayton, Mill City, Roseburg, & Klamath Falls may qualify for the USDA refinancing program. Most coastal areas from Gold Beach to Newport and all the way up to Astoria are located in eligible areas. To find out if you are located in an eligible area, the USDA has an eligibility map you can use to verify any property in Oregon or the continental United States located at: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
“This pilot program will help homeowners’ to take advantage of historically low interest rates, and by working closely with lenders, we are helping rural homeowners protect one of the most important investments they will ever make.” – U.S. Agriculture Secretary Tom Vilsack