USDA Loan Refinance

Types of Mortgages USDA Basics

The USDA (United States Department of Agriculture) loan, commonly called the Section 502 loan, was developed to increase homeownership for lower income borrowers in more rural areas of the country. The USDA loan is a fantastic yet underutilized home mortgage product that is widely available in MA.

USDA Facts

  • Eligibility is based on income and property eligibility
  • Zero equity required
  • Low competitive interest rates
  • Many areas in MA qualify
  • Flexible credit underwriting
  • Must be primary residence
  • Condos or Townhome must meet standards of Fannie/Freddie/VA or FHA

USDA Mortgage Insurance Rate & Example:

  • For refinances, 1.00% upfront fee paid at closing, based on the loan size.
  • For refinances, 1.00% upfront fee paid at closing, based on the loan size.


  • Accuracy matters, make sure to provide your lender with all of information requested
  • Inform your lender of any changes to your credit including credit inquiries or new accounts opened
  • Always provide full bank or retirement statements that include your name/address/institution/full account#/all pages. If it says page 1 of 5, all 5 pages will be required.
  • Provide requested documentation after an approval is issued as quickly as possible
  • Do not fax a copy of your license either scan and email  it or take a picture with your phone. A faxed copy is almost always too dark.


  • Do not deposit any money into your bank account until first talking with your lender
  • Do not open up any new lines of credit or pull your credit until you have closed on your loan
  • Do not change employment situation during the transaction
  • Work with your lender. Sometimes it may seem like the lender is asking for too much paperwork, try to be thorough, organized and review all of your documentation before sending it over.

Mortgage Buddy Tip: The USDA refinance loan is a fantastic product for home owners in MA, but it’s only available for those who currently have a USDA loan. This product can be challenging to qualify for in a down market since most applicants do not put any money down at the time of purchase.