Finance
What is a 'USDA Rural Development loan' and what areas of Idaho qualify?
AA loan only for agricultural land purchase
BA no-down-payment mortgage guaranteed by USDA for eligible buyers in designated rural areas, including many small Idaho towns and rural communities✓ Correct
CA loan for developing Idaho state-owned land
DA loan available only to Idaho farmers
Explanation
USDA Rural Development (Section 502) loans offer 100% financing (no down payment) for owner-occupied primary residences in eligible rural areas. Many Idaho communities qualify, including smaller towns and suburban areas around cities like Boise, Twin Falls, and Idaho Falls.
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Key Terms to Know
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
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.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
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.
Math Concepts
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