USDA RD Section 502 Direct Loans : RealEstate – reddit – The subsidy is subject to recapture upon the sale of the property, but it’s hard to get a real idea of what portion of the total subsidy granted is actually recaptured. I’m kind of just going with the worst case scenario using a loan calculator, and comparing what I would have paid in interest at 3.125% vs 1% in say the year 2020.
Subsidy Recapture | Forum.FreeAdvice.com – USDA is saying that the payoff will now include what was being subsidized while she was alive. It is about $28,000, which I never knew about having to recapture sudsidy. The subsidy will need to be paid or we will not be able to refinance.
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Recapture | AppraisersForum.com – You are absolutely right. It is a USDA loan. Called the bank got a copy of the letter you spoke of and the recapture is apparently the subsidy the governments paid for the borrower. They will consider capital improvements, however, no matter what happens I think recapture is almost always due according to the one person I spoke to.