BISMARCK, ND, Feb 01, 2013 -- Jasper Schneider, USDA Rural Development state director, today announced that North Dakota is being added to a pilot program that enables current USDA borrowers to save money on housing costs by refinancing their mortgages with lower interest rates.
“The expansion of this program will help borrowers lower their monthly mortgage payments and ease their financial burdens,” Schneider said. “Individuals and families living in USDA-financed homes will be able to take advantage of historically low interest rates.”
USDA unveiled the initiative almost one year ago. It initially included 19 states hardest hit by the downturn in the housing market. To date, 3,394 rural borrowers have benefited from the USDA refinancing pilot program.
In North Dakota, over 3,500 borrowers may qualify to participate in the pilot program. To be eligible, borrowers must have a loan through the USDA Single Family Housing Direct or Guaranteed program. Participants must meet income requirements and have made their mortgage payments on time for 12 consecutive months. Borrowers do not have to obtain new credit reports, property inspections or home appraisals. Refinanced loans must be at least one percent below the original interest rate. Terms cannot exceed 30 years. No cash out is permitted to the borrower.
Rural Development’s housing loans and grants make a significant difference in the lives of thousands of rural Americans across the nation. The pilot refinance program will to help responsible homeowners while boosting rural economies and stabilizing communities. For more information on the housing refinance pilot program, please visit the USDA Rural Development’s web site at http://www.rurdev.usda.gov/nd or call (701) 530-2037.