MORTGAGE LOAN PAYOFFS

FOR USDA RURAL DEVELOPMENT DIRECT HOUSING LOANS

What is this? After a loan is closed, the subsidized portion of a borrower’s monthly payment will accrue as a separate account. The Government pays this subsidy each month to help very low and low income households

afford to own a home. This account is subject to being repaid or “recaptured” at the time a borrower

sells or transfers the property to another owner, no longer occupy the property, or pays the loan in full.

The maximum amount of recapture due will be the lesser of the amount of subsidy received or up to

50 percent of the Adjusted Value Appreciation in the property.

The Value Appreciation is…