What is a 'USDA Rural Development' loan and who can use it in Delaware?
Why A federally guaranteed loan program offering 100% financing (no down payment) for eligible buyers in qualifying rural and some suburban areas of Delaware Is Correct
Answer B: A federally guaranteed loan program offering 100% financing (no down payment) for eligible buyers in qualifying rural and some suburban areas of Delaware
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
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Key Terms to Know
A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Math Concepts
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