Finance
An Iowa buyer qualifies for a USDA guaranteed loan. Which statement is TRUE?
AUSDA guaranteed loans require a 10% down payment
BUSDA guaranteed loans are available for eligible rural properties with no down payment for qualified borrowers✓ Correct
CUSDA loans require private mortgage insurance
DUSDA loans are only for farming operations
Explanation
USDA guaranteed loans (Section 502 Guaranteed Loan Program) offer no-down-payment financing for income-qualified buyers in eligible rural areas. They carry an upfront guarantee fee and annual fee instead of PMI.
Related Iowa Finance Questions
- Iowa's Construction to Permanent loan is a financing product that:
- Iowa's conventional mortgage loan conforming limit is set by:
- Iowa's 'equity of redemption' allows a mortgagor (borrower) to:
- An Iowa buyer is purchasing a $350,000 home with 20% down. What is the LTV ratio on their mortgage?
- An Iowa buyer wants to compare a 15-year mortgage to a 30-year mortgage on the same loan amount. Which statement is TRUE?
- Iowa's Iowa Finance Authority (IFA) Mortgage Credit Certificate (MCC) program is available to:
- A jumbo loan in Iowa differs from a conforming loan because:
- An Iowa homebuyer's gross monthly income is $5,500. The front-end (housing expense) ratio limit is 28%. What is the maximum allowable monthly housing payment?
Practice More Iowa Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Iowa Quiz →