The Press-Dispatch
Issue link: https://www.ifoldsflip.com/i/680901
The Press-Dispatch Local Wednesday, May 18, 2016 A- 7 USDA lowers cost to refinance rural housing loans USDA Rural Housing Service Administrator To- ny Hernandez today an- nounced a series of changes that will make it faster and cheaper for homeowners to refinance USDA mortgages. "These changes reaffirm the Obama Administra- tion's commitment to mid- dle-class Americans, and I am pleased that we continue to provide affordable hous- ing to support thriving econ- omies in rural communi- ties," Hernandez said. "Help- ing homeowners refinance their homes to reduce their monthly payments and take advantage of low interest rates will bring increased capital to rural residents and the communities where they live and work." The changes apply to mortgages issued through USDA and those where US - DA has issued a loan note guarantee. They take effect June 2, 2016. Homeowners current on their mortgages for the past 12 months will no longer be required to secure an ap- praisal, provide a credit re- port or undergo a debt-to- income calculation when they refinance for a 30 -year term. These changes will save time and money. USDA began testing these changes in a 2012 a pilot pro- gram that was later expand- ed to include 34 states and Puerto Rico. To date, nearly 9,500 homeowners have re- financed their mortgages. Some borrowers saved as much as $ 600 a month. The average savings is around $150 per month. The streamlined rules are consistent with banking in- dustry lending standards. These refinanced loans, like all USDA Rural Devel- opment housing loans, meet rigorous underwriting stan- dards and are made only to qualified borrowers. The Department of Housing and Urban Development and De- partment of Veterans A ffairs have similar programs for the Americans they serve. Interested homeowners with USDA loan guarantees should contact their lender about refinance procedures. Homeowners with USDA Di- rect loans should contact a USDA housing specialist. For additional details on these new changes, please see page 26461 of the May 3 Federal Register. To learn more about USDA housing programs, please contact a housing specialist at your nearest USDA Rural De- velopment office. A list of State offices is available at: http://www.rd.usda.gov/ contact-us/state-offices. Since 2009, USDA Rural Development (#USDARD) has helped 1.1 million ru- ral residents buy homes; in- vested $11 billion to start or expand 103,000 rural businesses; funded near- ly 7,000 community facili- ties such as schools, public safety and health care facili- ties; financed 185,000 miles of electric transmission and distribution lines; and helped bring high-speed Internet access to nearly 6 million rural residents and businesses. For more infor- mation, visit www.usda.gov/ results. Pike Central's BPA enjoyed a suc- cessful trip to Bos- ton May 5 -9 for the organization's Na- tional Conference. Kaylee Gray and Bailey VanWinkle earned the oppor- tunity to partici- pate by advancing through the Dis- trict and State lev- els of their events, Presentation Man- agement and Ad- ministrative Sup- port Research Proj- ect, respectively. While at the con- ference, Gray, Van- Winkle and their Advisor Dana Def- fendoll, traversed the city to take in the sights, includ- ing the historical Boston Tea Par- ty site, fireworks at Fenway Park and the obligatory abundance of sea- food. Pike Central BPA group attends National Conference Kaylee Gray, Dana Deffendoll and Bailey VanWinkle SUBSCRIBE TODAY! 812-354-8500 We're not afraid to shed some light on the truth. STOP it takes 3 MINUTES to subscribe to 812-354-8500