Every refinance option for a USDA home loan, compared
Every option, side by side
Compared
Inside USDA, the three refinance types differ mainly in paperwork: whether an appraisal and a full debt review are needed. Outside USDA, a conventional or FHA refinance can provide cash or remove the USDA annual fee but brings its own insurance and qualification rules. Start from the goal and work back to the option.
Last reviewed against the primary sources listed below.
Comparison
| Option | Cash out | Appraisal | Ends USDA annual fee |
|---|---|---|---|
| USDA non-streamlined | No | Yes | No |
| USDA streamlined | No | No | No |
| USDA Streamlined-Assist | No | No | No |
| Conventional refinance | Possible | Usually | Yes |
| FHA refinance | Possible | Usually | Yes, FHA premiums instead |
Option questions
What is the best way to refinance a USDA loan?
It depends on your goal. Rate or payment goals point to USDA options; cash or fee goals point outside USDA.