Bulletin 2021-016 USDA Product Guideline Update

USDA Product Guideline Update

NewRez LLC "NewRez" Approved Correspondent Clients: please note that effective immediately, NewRez has updated the USDA Product Profile.


The Streamline Refinance is one of three refinance options that USDA offers and contains the following general requirements:


  • Refinance of an existing USDA Guaranteed loan
  • Appraisal not required unless a borrower has received payment subsidy in order to determine the amount of subsidy recapture due.  
  • Max loan amount can only include the following eligible costs:
    • Principal and Interest
    • Re-conveyance fee
    • Upfront Guarantee Fee
  • Maximum loan amount cannot exceed original loan amount.
  • One existing borrower must remain on the new loan (co-borrower can be removed)
  • 12 months seasoning required from time of loan application, 0x30x6
  • A borrower who has deferred mortgage payments as result of a recent forbearance plan:
    • Must have resumed making payments for a period of at least three (3) months; and
    • have a 0x30x6, excluding the time the loan was in forbearance
  • GUS must be utilized to underwrite and submit to USDA for Conditional Commitment (3555-18E)
  • Loan must meet requirements of USDA Handbook Chapter 10 and Chapter 11
  • The borrower's new rate must be fixed and must not exceed the interest rate of the original loan being refinanced.
  • Must meet the NewRez Generic NTB test


The Streamline Refinance Option has been added to the Product Profile.