USDA Streamlined-Assist Refinance in Colorado: The Rules

USDA streamline: lower a USDA payment with less paperwork

If you have a USDA loan, the Streamlined-Assist refinance replaces it with a new USDA loan at a lower payment, with no new appraisal and no debt-to-income calculation.

Who it fits

USDA borrowers whose payment would drop by at least $50 a month with a new loan. It fits well when income or debts have changed since you bought, because the new loan is approved without a debt-to-income calculation and without a new appraisal. Your credit and recent payment history are still reviewed.

The rules that matter

Same home, same owners. The new loan is on the same home, and you still live in it as your main home.
The savings test. Principal, interest and the monthly annual fee together must fall by at least $50. Taxes and insurance are not part of the test.
The rate. The new loan is a 30-year fixed rate that is no higher than your current one.
Income. Household income must be within USDA’s limit for your county when you refinance.
USDA’s fees. The 1% upfront fee can be added to the loan, and the 0.35% annual fee continues for the life of the loan.

If your household’s income has grown since you bought, check the income limit first, because it counts everyone in the home, not only the borrowers.

The USDA annual fee does not end. If you have built enough equity, a conventional refinance without mortgage insurance is worth comparing.

Check the savings

Enter your current loan and the new one to see the monthly savings and the month the costs are paid back.

Refinance calculator. Turn on JavaScript to change the numbers.

Monthly change−$251

$251 a month less. It breaks even after 1 year, 2 months, when the savings cover the costs.

Net savings over time

If you sell or refinance after7 years

1 year30 years

Interest and mortgage insurance saved, minus the refinance costs: what selling or refinancing again at that point would leave you ahead. It is largest when the new loan starts charging more interest a month than the current one would have. Press or drag the chart to move the look point.

Paid for After 7 years, the new loan is $16,499 ahead of keeping your current loan: the refinance has paid for itself.

Net savings are largest at 20 years, 5 months. From then the new loan charges more interest each month than the current loan would have, because more is still owed on it. Paying $70 extra a month ends the new loan when the current one would end, and the savings keep growing.

Payment now and after

	Current loan	New loan
Loan amount	$260,000	$263,500
Principal and interest	$1,874	$1,622
Mortgage insurance	$0	$0
Monthly total	$1,874	$1,622
Paid off in	27 years	30 years
Interest left to pay	$347,146	$320,569

A new 30-year term is the longest the loan can run, not how long you have to take. Keep paying $1,874, today's payment, and the new loan is paid off in 21 years, 3 months. That is 5 years, 9 months sooner than your current loan. To see it, set extra principal to $250.

Net savings counts interest and mortgage insurance on both loans and the cost of refinancing. Principal is not a cost, so it is left out. The new loan includes the $3,500 in costs.

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Calculators and guides

Common questions

Do I need an appraisal?

Not for a guaranteed loan. A direct loan borrower who received payment subsidy may need one.

Can I take cash out?

No. The only money back allowed is a refund of eligible closing costs you paid yourself.

What if my household income is now above the limit?

Then the USDA streamline is not available. A conventional refinance may fit, and if you have served, a VA refinance can replace a USDA loan.

Can I add or remove a borrower?

You can add borrowers. A borrower can be removed only if at least one original borrower stays on the loan.