Many lenders and investors are shying away from participating in a special pilot program to refinance Rural Housing Service loans due to risky underwriting features and low profit margins.

However, the largest RHS lender, JPMorgan Chase, is going ahead with a pilot program that allows underwater borrowers in 19 of the “hardest hit” states to refinance without a credit check or appraisal. Closing costs can be rolled into the loan amount.

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