Finance
What is 'USDA Rural Development loan' and which Hawaii properties might qualify?
AA. Only Oahu properties qualify; neighbor islands are excluded
BB. USDA loans provide 100% financing for eligible borrowers in eligible rural areas; many Hawaii neighbor island communities (certain areas of Maui, Hawaii, Kauai, Molokai) qualify as rural✓ Correct
CC. USDA loans are only for agricultural purposes in Hawaii; no residential use
DD. All Hawaii properties qualify because Hawaii is a small state
Explanation
USDA Rural Development loans (Section 502) provide 100% financing (no down payment) to eligible low-to-moderate income borrowers purchasing homes in eligible rural areas. In Hawaii, many communities on the neighbor islands qualify—portions of Maui, Hawaii Island, Kauai, and smaller islands may be eligible. Honolulu and its suburbs generally do not qualify. Borrowers should check the USDA's eligibility map.
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