Refinancing an existing loan can be a nightmare with most of the traditional home loans. However, if you have a USDA home loan, than the task of refinancing can be a seamless and easy option. If you have a rural home loan that is financed by the United State Department of Agriculture or simply put you have a USDA loan, than the process of getting a mortgage refinance is a problem free task even if you own more than your home’s current market value.
If you are in the category of the low income family line than you have passed the most important USDA Loan eligibility criteria which mean you are also eligible to apply for USDA refinance programs. Under all the USDA home loan programs, the USDA streamline refinance programs as well as the USDA refinance pilot program are created specifically to help homeowners refinanced who find themselves underwater due to the recent economic downturn.
With the help of these programs a low income family not only gets to lower their interest rates considerably but also get the chance of slashing down their monthly payments quite nicely. The other advantage of these programs is that they do not have high eligibility criteria or lots of guidelines and the applicant does need to go through a stringent qualifying process to be actually eligible for these programs. The only criteria which is a must to apply for these refinance program is that the applicant should have a USDA loan in the first place to finance his home purchase.
Difference between USDA Refinance Pilot Program and USDA Streamline Refinance Program
Both these programs are refinance programs, however there are several major differences between the two that make them perfect for homeowners with different needs.
The second major difference between the two is that the streamline refinance program has no restriction on the list of borrowers which means that under this program if one original borrower is the same than other borrowers can easily be deleted or added without restrictions however under the pilot program the borrowers of the loan that is to be refinanced must be the same.