Updated over 1 year ago on .
$10M USDA Loan, (credit union) If replacing borrower, Does 70%loan guarantee Follow?
A 5 year old USDA loan for an assisted living facility for $10M. This loan is in place, $300,000 loan guarantee fee to USDA for 70% guarantee. $7M. Do you know if the loan is assumed, that the guarantee will follow with the new entity assuming the loan? I was under the impression that any change in loan guarantor would NOT allow the loan guarantee to follow. If anyone has data or can show me how USDA Rural deals with this, it would be helpful.