Posted by Ronald * Starr(in No CA) on April 11, 2002 at 21:59:47:
Call up the USDA and ask them. I assume you mean FmHA loan not a FHA-insured loan. These days it is called the USDA rural development office.
I believe that you will have to pay off the subsidy, but I am not enough of an expert on the program to want you to rely on what I am saying. You might also find the information you want on a website for the USDA. Do a search, it might save you time.
Good Investing*Ron Starr