What is a requirement for all refinances of USDA mortgages?

For refinances of USDA mortgages, one key requirement is that they must involve the same borrower as the original loan. This ensures continuity and responsibility; the USDA program is designed to assist those who already have a stake in the property and the community. By requiring the same borrower, the USDA aims to maintain a level of accountability and trust in the borrowing process, ensuring that individuals who qualify for the loan also qualify for the refinance.

The other options, while they may seem appealing, do not align with the USDA's guidelines for refinancing. For example, the requirement does not mandate that refinances be cash-out or involve any specific length, such as being shorter than 15 years. Additionally, there's no stipulation that the new loan must have a higher interest rate than the original loan; in fact, refinances typically aim to secure better terms or interest rates.