USDA's regulation offers three ways to refinance a loan that is already USDA: streamlined, non-streamlined and streamlined-assist. The names blur together, but the differences are concrete - which loans qualify, whether an appraisal is needed, and how much of a full application you go through.
For existing Section 502 guaranteed loans. No new appraisal is required. Standard USDA documentation and underwriting apply.
For existing Section 502 guaranteed or direct loans. Requires a new market value appraisal, and the new loan must be supported by the equity it shows. Standard underwriting applies.
For existing direct and guaranteed borrowers. No DTI, credit report, inspection or LTV requirements, and generally no appraisal - but income eligibility and a clean 12 months apply.
On the non-streamlined option, the new loan may exceed the appraised value by the amount of the upfront guarantee fee, if that fee is financed.
The new rate must be fixed and no higher than the rate on the loan being refinanced.
You must have kept the account current for the 180 days before applying.
The same property as the original loan, owned and lived in as your principal residence.
No USDA refinance is a cash-out refinance.
The lender pays USDA a guarantee fee on the refinance, and the new loan may carry an annual fee. USDA can also limit the number of refinance guarantees based on market conditions.
If your income has grown past USDA's limit, the streamlined-assist is off the table, and the streamlined or non-streamlined option becomes the USDA route - with full underwriting, including your current debts. If your loan is a direct loan, the plain streamlined option may not be available, which leaves non-streamlined or streamlined-assist; direct loans have their own issues, covered on refinancing a direct loan.
And if what you actually want is cash out or to drop USDA's annual fee, none of the three does that. That is a refinance out of USDA, which the homepage compares. For the details of the lightest option, see streamlined-assist.
Source: 7 CFR 3555.101(d)(3)(i) through (x) Refinancing and 3555.102(e) (eCFR, current 9/24/2026). Lenders may set stricter terms. Not a commitment to lend.
Ten minutes with your current statement is enough to tell you whether the streamlined-assist, a conventional refinance, or standing pat is your best move. The review costs nothing.