What is a 'USDA Rural Development' loan in Delaware real estate?
Why A federally backed loan program for low-to-moderate income buyers in eligible rural and suburban areas, often with no down payment required Is Correct
Answer B: A federally backed loan program for low-to-moderate income buyers in eligible rural and suburban areas, often with no down payment required
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
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
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.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Math Concepts
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