WASHINGTON –U.S. Senator Tom Udall (D-NM) today announced that the U.S. Department of Agriculture will launch a new Single Family Housing Guaranteed Rural Refinance Pilot Program in New Mexico to help rural borrowers refinance their mortgages.
Currently, approximately 2,000 New Mexico families are enrolled in the Single Family Housing Guaranteed Program. They are now eligible to refinance their homes at a lower interest rate and reduce their monthly mortgage payments. To take part in the new pilot program, rural residents are encouraged to contact their banks.
"I applaud the Obama Administration for expanding their homeowner assistance programs in New Mexico," Udall said. "The money that this program will save makes a big difference to families trying to make ends meet and struggling to stay in their homes. I am working with USDA to see that the initiative helps New Mexico's rural communities as much as possible."
To be eligible under this pilot, borrowers must have made their mortgage payments on time for 12 consecutive months. They do not have to obtain new credit reports, property inspections or home appraisals. Refinanced loans must be at rates below the original interest rate. Terms cannot exceed 30 years. No cash out is permitted to the borrower.