Just like FHA Streamlines, Streamlines on USDA loans are fast and easy refinances designed to drop the interest rate and payment. The full guidelines are found here : document AN 4549 at http://www.rurdev.usda.gov/rd-an_list.html
here are the essentials about USDA streamline refinances :
1) the mortgage being refinanced must already be an existing USDA guaranteed loan.
2) The only manner in which the refinance is ‘Streamlined’ is the absence of an Appraisal. An appraisal is not needed. However in every other way, the loan process resembles a standard USDA purchase mortgage loan.
3) The maximum allowable loan amount is limited to the principal balance of the current loan plus the one-time guarantee fee of 1.0% which is funded on top of the loan..
5) Although an appraisal is not required, the borrower has to get a property inspection certifying the property meets minimum standards as defined by HUD regulations 4150.2 and 4905.1.
6) if there’s an existing 2nd mortgage on the property, it cannot be included in the new USDA loan. The lender on the 2nd must make their lien inferior, in other words, subordinate.
7) the homeowner cannot get ‘cash out’ of the refinance.