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MI RD Form 3550 2

MI RD Form 3550 2

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Instructions and help about MI RD Form 3550 2

hi it's Don Connors at mortgage one and today we're talking about a USDA loan also known as rural development and the question is can a USDA loan be assumable so in our research checking guidelines and fact-finding it is true a USDA loan can be assumable what does this mean exactly well if you have a new buyer that comes on the scene they can get approved and can qualify to pick up your loan that means the current interest rate the current loan balance and the remaining life of the loan so if you have 25 years left on your USDA loan the interest rate is three percent and the balance is three hundred thousand dollars your new buyer can pick up the loan and let's say you want to sell the house for 350 000 that person has to figure out what to do with that fifty thousand dollars they could get a new second mortgage because remember rural development is zero down so there's no down payment requirements so they can get a new second loan you can provide second

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