Andrade Real Estate Services

The USDA Rural Development Refinance Program allows existing USDA borrowers to lower their interest rate and improve loan terms through a streamlined or non-streamlined refinance. The Non-Streamlined Refinance option is the most common for borrowers seeking a full documentation refinance using a new appraisal.

This program is ideal for borrowers who:

Have an existing USDA Loan.
Have made on-time payments for the past 6 months.
Want to lower their rate or payment (cash-out not permitted).
Continue occupying the property as their primary residence.

Property Type	Credit Score	Max LTV/CLTV	Max DTI	Notes
SFR	620+	100%	41%-44%	Appraisal required. Must remain primary residence.
Condo	620+	100%	41%-44%	Appraisal required. Condo must be USDA-eligible or previously approved.
Manufactured Home	620+	100%	41%-44%	Must meet USDA standards and be on a permanent foundation.
2-4 units	N/A	N/A	N/A	Not eligible under USDA refinance rules.

Occupancy Requirement
Primary Residence Only Borrower must currently occupy the home as their primary residence and continue living there after refinance.
Rental Income Not allowed for qualification — USDA refinances apply only to owner-occupied single-unit homes.

Location Requirement
Location Property must be located in a USDA-designated eligible rural area.
Notes Borrowers can verify property eligibility on the official USDA map: USDA Property Eligibility Map.

Residency Eligibility
Eligible Valid SSN — must have a valid Social Security Number (SSN). Permanent residents — must provide a valid, unexpired Green Card.
Ineligible ITIN borrowers are ineligible. Foreign nationals are ineligible. Borrowers without a valid Social Security Numbers (SSN). Non-permanent residents — eligible with valid visa or Employment Authorization Document (EAD). Borrowers with a prior mortgage fraud conviction are ineligible.

Income Consistency Requirements
Employment History Two years of employment history required with the same employer or with different employers in the same line of work, Education or training may be used to fill gaps in history, If on temporary disability, income used will be the lower of the disability pay or the regular employment income.
Notes Frequent job changes are allowed if they are within the same line of work and the income is stable or increasing, provided this is supported by documentation, Gaps over 6 months require explanation + current 6 months continuous employment, Education and training must be documented with transcripts, diploma, certificate, professional license, or official school/training program documentation, An employer’s letter is required and must confirm the return-to-work date. If the return-to-work date is before the first mortgage payment, use regular income; if the return-to-work date is after the first mortgage payment, use the lower of disability income or regular income.

Income Type	Requirement	Documentation
Wage Earner	2 years employment history. Gaps are acceptable if explained. Must show stability and continuance.	30 days paystubs + 2 years W-2s; VOE if required.
Self-Employed	Must own ≥25% of business. 2 years required. Must show stable income (decline >10% requires lowest income; ≥20% variance requires explanation).	2 years personal & business tax returns, YTD P&L, business verification (CPA letter, license, EIN). Business bank statements may be required.
Part Time	2-year history required; must be likely to continue.	W-2s, paystubs, VOE verifying hours and history.
Seasonal	2-year history required; must be likely to continue.	W-2s, paystubs, VOE or employer letter confirming rehire pattern.
Social Security, Disability, and Retirement Income	Must be expected to continue ≥ 3 years.	Award/benefit letter (SSA, pension, disability) + proof of receipt (bank statements, 1099s, or deposits).
Alimony / Child Support	Must be court-ordered or written agreement; ≥ 3 years continuance.	Divorce decree, separation agreement, or order + 6 months proof of receipt.

Loan Amounts
Minimum Loan Amount $50,000 minimum (case-by-case exceptions possible).
Maximum Loan Amount The maximum loan amount is 100% of the appraised value plus the upfront guarantee fee, if financed.

Property Types
Eligible SFRs (Single-Family Residences), PUDs (Planned Unit Developments), Approved Condos, Manufactured homes (permanent foundation and must be an existing unit that has never been previously installed on a different home site, and must have a manufactured date that is within 20 years from the closing date), ADUs - One ADU does not make a property ineligible. Appraiser must confirm it’s not a second dwelling. ADUs for household use are allowed; rental-style ADUs (separate meters/address) are ineligible.
Ineligible 2–4 Units, Mobile Homes, Second Homes, Investment Properties, Non-Warrantable Condos, Commercial property, Farms, orchards, ranches, Properties with large farm service building or with buildings/equipment for specific income producing purposes. Properties with windmills/wind turbines or cell phone towers located on the property, Manufactured properties with ADU or guest homes are not eligible, Condo Hotels (projects managed or operated as hotel/motel, hotel/motel conversions), Properties not located in a rural area as defined by USDA Rural Development.

Disclaimer – This matrix was published on 09/26/2025. Program guidelines may have changed since then. Please contact Alexis to confirm the most current requirements. For complete details, refer to the Partner Matrices PDF or reach out directly to Alexis for program-specific guidance.

Refinance

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