USDA-RHS Mortgage/recapture/sell after 30 yrs or stay?

[Morningstar335]

I live in Pennsylvania. I bought my home in 1988 at $92,500, and loan amount - $80,000 from USDA-RHS, interest rate 9.45%. I have taken the full subsidy approx 90%., put a moratorium on for 2 years and partial subsidy for the balance. Last year, I got married and they took the subsidy away, so only the last year I have paid full amount. Nothing in escrow, my homeowners insurance and taxes are paid separately. All mortgage/taxes/insurance always paid. House appraised for $136,000. Have not reached out for another lender. USDA is asking for me to refinance. Im guessing that is because we have been paying the full amount/no longer subsidized after getting married, and recently I have been making payments on the principle. My credit score is 682. My husband is not on the deed or the mortgage.

My husbands credit score is 750. My husband has a home that we are currently renting, there is zero equity in the home. My name is not on his mortgage or deed. He is the only income earner.

I feel like a mouse on a wheel. I want to pay off my mortgage. I dont see how I can do this, even if I put $ on the principal, because I still have to pay the recapture.
What I would like:
I would like to remodel my home into 2 apartments, rent and move. It would be nice of there was equity in my home to use to buy a property to live.
How can I do this? I was thinking I could sell my home to my husband. And I would like very much to include in the sale, money to remodel the house into apartments. I am open to whatever needs to be done. If I have to just sell and move, I will do that as well.
Any advice will be greatly appreciated.

 

[Silverplum]

I live in Pennsylvania. I bought my home in 1988 at $92,500, and loan amount - $80,000 from USDA-RHS, interest rate 9.45%. I have taken the full subsidy approx 90%., put a moratorium on for 2 years and partial subsidy for the balance. Last year, I got married and they took the subsidy away, so only the last year I have paid full amount. Nothing in escrow, my homeowners insurance and taxes are paid separately. All mortgage/taxes/insurance always paid. House appraised for $136,000. Have not reached out for another lender. USDA is asking for me to refinance. Im guessing that is because we have been paying the full amount/no longer subsidized after getting married, and recently I have been making payments on the principle. My credit score is 682. My husband is not on the deed or the mortgage.

My husbands credit score is 750. My husband has a home that we are currently renting, there is zero equity in the home. My name is not on his mortgage or deed. He is the only income earner.

I feel like a mouse on a wheel. I want to pay off my mortgage. I dont see how I can do this, even if I put $ on the principal, because I still have to pay the recapture.
What I would like:
I would like to remodel my home into 2 apartments, rent and move. It would be nice of there was equity in my home to use to buy a property to live.
How can I do this? I was thinking I could sell my home to my husband. And I would like very much to include in the sale, money to remodel the house into apartments. I am open to whatever needs to be done. If I have to just sell and move, I will do that as well.
Any advice will be greatly appreciated.

Start here at the source, and get answers to your questions from USDA: http://www.usda.gov/wps/portal/usda/usdamobile?contentidonly=true&contentid=2016/05/0116.xml

 

[LdiJ]

I live in Pennsylvania. I bought my home in 1988 at $92,500, and loan amount - $80,000 from USDA-RHS, interest rate 9.45%. I have taken the full subsidy approx 90%., put a moratorium on for 2 years and partial subsidy for the balance. Last year, I got married and they took the subsidy away, so only the last year I have paid full amount. Nothing in escrow, my homeowners insurance and taxes are paid separately. All mortgage/taxes/insurance always paid. House appraised for $136,000. Have not reached out for another lender. USDA is asking for me to refinance. Im guessing that is because we have been paying the full amount/no longer subsidized after getting married, and recently I have been making payments on the principle. My credit score is 682. My husband is not on the deed or the mortgage.

My husbands credit score is 750. My husband has a home that we are currently renting, there is zero equity in the home. My name is not on his mortgage or deed. He is the only income earner.

I feel like a mouse on a wheel. I want to pay off my mortgage. I dont see how I can do this, even if I put $ on the principal, because I still have to pay the recapture.
What I would like:
I would like to remodel my home into 2 apartments, rent and move. It would be nice of there was equity in my home to use to buy a property to live.
How can I do this? I was thinking I could sell my home to my husband. And I would like very much to include in the sale, money to remodel the house into apartments. I am open to whatever needs to be done. If I have to just sell and move, I will do that as well.
Any advice will be greatly appreciated.

Have you looked into refinancing the home? You appear to have a decent chunk of equity. Interest rates are much lower now and you would likely be able to cover interest AND principle with a lower payment.