Is a Borrower Required to Pay the Subsidy Recapture on a Refinance?
Question: Our client would like refinance their USDA loan into a conventional loan. Do they have to pay the subsidy recapture? Answer: Typically, yes. USDA RD 502 Direct loans are serviced by the Customer Servicing Center (CSC) located in St. Louis, Missouri. Obtaining a “Statement of Loan Balances” letter will assist lenders to determine if […]