USDA Direct Loan- Can't pay mortgage question

[Anonymous]

Hi, We are in the process of getting a USDA direct loan.. but I was wondering what happens if down the road you loose your job and are unable to pay your mortgage until you can find a new job? Do they help you out with that or anything?

Thanks

[Anonymous]

I know I read somewhere on the usda site that you can arrange to suspend payments temporarily or reduce payment amounts, but after a certain amount of time, you have to make up for it by making larger payments than you started with. I'm hunting for the official word now & will post the link when I find it unless someone beats me to it.

[Anonymous]

§ 3550.207 Payment moratorium (pg 85 of this pdf)

RHS may defer a borrower’s scheduled payments for up to 2 years. NP borrowers are not eligible for a payment moratorium.

Click the link to read more about it. 

[Anonymous]

Thanks so much! What's NP borrowers ?

[Anonymous]

NP = nonprogram loans. You can read about those on p.53 of the pdf linked above. I recommend you read over that entire pdf & this one as well. Knowledge is power! Best of luck to you.

[Anonymous]

I just found this article by the Wall Street Journal from 2012 & thought you'd find it helpful:  USDA Is a Tough Collector When Mortgages Go Bad