Which refinance option typically requires an appraisal?

The USDA non-streamline refinance option typically requires an appraisal because it involves a complete assessment of the property's value to establish the new loan amount. This type of refinance is designed for borrowers who want to switch from a USDA adjustable-rate mortgage to a fixed-rate mortgage or for those who need to access cash equity from their home. An appraisal is essential in this scenario since it ensures that the lender has an accurate and current value of the property being used as collateral for the new loan.

In contrast, the USDA streamline assist loan and the USDA streamline refinance are designed to simplify the refinancing process for eligible borrowers who already have a USDA loan. These options often do not require an appraisal, as they are intended to be quicker and less cumbersome, focusing on reducing monthly payments and providing a more efficient pathway for borrowers. Therefore, the requirement for an appraisal is what uniquely characterizes the USDA non-streamline refinance compared to the other options.