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About the USDA Refinance Program

The USDA loan is one of the most forgiving loans to refinance. There’s no appraisal, which is a big deal if you bought when prices were higher or you just want certainty going in. You can roll your closing costs into the loan, and there’s no water test or termite inspection. For a lot of homeowners, that adds up to real savings.

USDA gives you three different ways to refinance, and they don’t all work the same. Which one fits comes down to whether you can document income and what your credit looks like.

Three USDA Refinance Options Compared

Same underlying program, three different ways to refinance — pick the one that fits your situation:

Feature	Streamlined-Assist	Streamlined	Non-Streamlined
Appraisal Required?	No	No	Yes
Income Verification?	Not required	Required	Required (full)
Credit Underwriting?	None	Light review	Full review
DTI Calculation?	Not required	Required	Required
Min Payment History	12 months on-time	12 months on-time	None specific
Required Payment Reduction	$50/mo P&I+MI minimum	None specific	None
Roll Closing Costs Into Loan?	Yes	Yes	Yes
Eligible for Cash Out?	No	No	No (USDA refis are rate/term only)
Best For	Existing USDA borrowers cutting their rate fast	Existing USDA borrowers needing slight underwriting flex	Borrowers with major life changes or non-USDA loans converting in

Quick read: the Streamlined-Assist is what most current USDA borrowers should use — fastest, easiest, and the only one that requires no income or credit review. Streamlined adds light underwriting. Non-Streamlined is for unusual situations.

USDA Streamlined-Assist Refinance — The Flagship Option

If you already have a USDA loan, start here. The Streamlined-Assist is about as close to a no-questions-asked refinance as you’ll find, and USDA built it that way on purpose — to keep people in the program when rates come down.

Here’s what the Streamlined-Assist does not require:

• No appraisal
• No income verification (no W-2s, pay stubs, or tax returns)
• No credit qualifying (your FICO doesn’t drive approval)
• No debt-to-income calculation
• No bank statements
• No new termite inspection or water test

What it does require:

• Existing USDA loan in good standing
• 12 months of on-time mortgage payments (no 30-day lates in the last year)
• The new loan must reduce your principal + interest + mortgage insurance payment by at least $50/month
• The home must remain your primary residence
• You must still meet USDA’s household income limits at the time of refinance

That last one trips people up. Even the Streamlined-Assist still has to clear USDA’s income limits, the same as when you bought. The limits do rise most years, so if you were borderline at purchase, you may have room now.

Florida USDA Refinance Income Limits

Income limits are still enforced just the same as when you bought your home — but the figures are updated by USDA each year. Current Florida USDA income limits for most counties are around $112,450 for 1-4 person households and approximately $148,450 for 5-8 person households. High-cost counties (parts of Miami-Dade, Broward, Monroe, and the Keys) have higher limits — often $130,000+ for 1-4 person households.

These limits change every year, and the figures vary by county. Call us if you’re close to these numbers or just over them — some deductions apply (childcare expenses, medical expenses for elderly/disabled household members, dependent deductions). USDA has zero flexibility on the income cap itself, but the deductions can sometimes bring you under. The same income rules apply for the USDA refinance program as for purchase.

Do I Still Need Good Credit?

For the Streamlined-Assist refinance, no — there’s no credit underwriting at all. You just can’t have any 30-day mortgage late payments within the past 12 months.

For the standard Streamlined refinance and the Non-Streamlined refinance, credit is reviewed but USDA is unusually flexible. We typically work with FICO scores down to 580, and sometimes lower with strong compensating factors. Your credit score will affect your interest rate even when it doesn’t affect approval. We can finance up to a 1% discount point to try and lower your rate as much as possible.

Closing Costs & Fees

Your closing costs will be typical of any refinance. The good news: these costs can be financed into your loan. In some cases we may also be able to grant a lender credit to reduce your loan amount. You will not need to come out of pocket one dime to get this refinance done in most scenarios.

It’s important to know that you will be charged another guarantee fee just like when you bought your home. Fortunately the USDA has lowered this to 1%, which is down from a historical 2.75%. Keep that in mind when calculating your savings — that 1% is added to your new loan balance.

USDA also has a monthly mortgage insurance with an annual factor of 0.35% based on the principal owed. This was implemented to further the longevity of the program — and it’s lower than FHA’s flat 0.85% MI. When using the USDA refinance program, factor that 0.35% MI into your savings analysis. Interest rates are currently low enough that even with the mortgage insurance, you could potentially save hundreds a month depending on what your current rate is. Over the life of your loan, this can add up to tens of thousands depending on how much you owe.

Real-World USDA Refinance Savings Example

Here’s what a USDA Streamlined-Assist refinance looks like on a $250,000 USDA loan when rates drop two percentage points:

Scenario	Current Loan	After Refinance
Loan Balance	$250,000	~$252,500 (closing costs rolled in)
Interest Rate	7.0%	5.0%
Principal & Interest	$1,663/mo	$1,355/mo
Monthly USDA MI (0.35%)	$73	$74
Total Monthly Payment	$1,736	$1,429
Monthly Savings	—	$307/mo
Annual Savings	—	$3,684/yr
5-Year Savings	—	$18,420
Cash Required at Closing	—	$0

Example only. Actual savings depend on your current rate, loan balance, and current market rates. Run your specific scenario with us — we’ll show you the exact savings before you commit.

How We Help With USDA Refinances

Outgrown USDA — you need cash out, or the home is no longer your primary? The broader Florida refinance options pick up where the streamline stops.

USDA Refinance FAQ