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.