A refinanced section 502 loan may run up to 40 years
What the document says“``(B) The Secretary may refinance or modify the period of any loan, including any refinanced loan, made under this section in accordance with terms and conditions as the Secretary shall prescribe, but in no event shall the total term of the loan from the date of the refinance or modification exceed 40 years.''.”
The section amends section 502(a)(2) of the Housing Act of 1949 to let the Secretary of Agriculture refinance or change the period of any loan made under that section, on terms the Secretary prescribes, so long as the total term from the date of refinancing or modification does not exceed 40 years. The amendment applies to loans made before, on, or after enactment.
What the document actually says“``(B) The Secretary may refinance or modify the period of any loan, including any refinanced loan, made under this section in accordance with terms and conditions as the Secretary shall prescribe, but in no event shall the total term of the loan from the date of the refinance or modification exceed 40 years.''.”
The farm agency may refinance a loan or change how long it runs. It sets the terms. From that day the loan may not run more than 40 years.
Refinancing replaces a loan with a new one. A longer term means a smaller payment each month. The change reaches loans already made.
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