Finance
Kansas first-time homebuyers purchasing in rural areas may be eligible for which type of zero-down-payment federal loan program?
AFHA loans with 0% down
BUSDA Rural Development loans, which offer 100% financing for eligible rural properties and qualifying borrowers✓ Correct
CVA loans (if veteran)
DConventional loans through KHRC only
Explanation
USDA Rural Development Section 502 Direct and Guaranteed Loan programs offer 100% financing (no down payment) for qualified low-to-moderate income buyers purchasing in eligible rural areas in Kansas.
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Key Terms to Know
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.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
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.
Math Concepts
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