Question 1

What is a USDA Mortgage Recovery Advance (MRA)?

Accepted Answer

A USDA MRA is a subordinate junior lien advanced by the lender to cover your arrears (up to 30% of your loan balance). It requires no interest or monthly payments, and is repaid when you sell the property or pay off your mortgage.

Question 2

How does a USDA Direct payment moratorium work?

Accepted Answer

For USDA Direct loans, a payment moratorium pauses or reduces your payments for up to 2 years if you experience a major loss of income. The USDA reviews your eligibility every 6 months, and the unpaid amounts are re-amortized at the end of the term.

Will the government save my USDA rural home loan?