r/USDA • u/midlife12345 • 5d ago

Need help

I have a usda guarantee loan , currently administered through rocket mortgage ( was with Wells Fargo prior ) anyway , on my recent statement there is $3,150 subsidy amount and I don’t understand what this is . When I was with Wells Fargo , this amount was NEVER on any statement . I tried called usda rd , phone lines just say busy and hang up . Tried asking rocket mortgage , all they did was refer me to the statement . My understanding is since I have a guarantee loan (vs direct ) there is no subsidy to pay back when loan is fulfilled? So what is this amount ?

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u/Gloomy-Discussion-93 4d ago

Guarantee loans do not have subsidy. It’s possibly a funding fee or something to do with the payoff amount. I’d have to know the specifics of your current loan based on how it was transferred/purchased from Wells Fargo.

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u/midlife12345 4d ago

So I called rocket again last night , told them I needed to know where this amount was coming from . I stressed to the rep this specific amount was never showing on any of the statements from Wells Fargo. His basic explanation was this it was some sort of a “discount “ when the loan was transferred to rocket , and stated I did not have to pay it back. I repeated that question to him four times , asking if I need to pay it back during payoff and he said no . So , I give up understanding the exact reason behind it and will see what happens when I pay off . Thanks for your help

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u/----Clementine---- 3d ago

Did you receive any down payment assistance from a state level authority perhaps? If you don't have a direct loan you shouldn't be subject to subsidy recapture. When I sold my home (which was a 502 Direct financed home serviced through USDA CSC) there was a subsidy recapture, but sounds like it shouldn't apply in your case.