Bulletin 2025-005 USDA Refinance Transactions - Reduced Seasoning Period
Newrez LLC "Newrez" Approved Correspondent Clients; this announcement contains the following information:
- Most recent USDA Announcement, effective immediately for all loans in the pipeline, unless otherwise noted.
Rural Development has reduced the Seasoning Period for eligible refinance transactions from 12 months to 180 days.
The updated guidelines apply to all Single-Family Housing Guaranteed Loan Program transactions. For a USDA loan to be eligible for refinancing, the following criteria must be met:
- The existing USDA loan must have closed at least 180 days prior to the Conditional Commitment request.
- The current USDA mortgage payment history must show no delinquencies greater than 30 days within the previous 180- days.
- All other refinance requirements outlined in HB-1-3555, Chapter 6, must be satisfied.
USDA Product Summaries have been updated. Complete guidelines will be released on January 30, 2025 in the USDA Underwriting Guide, Ch.4B, Transactions, 4B.3 Streamlined-Assist Refinance Mortgage.