Finance
A USDA Rural Development loan is designed for buyers in:
AHigh-density urban areas
BEligible rural and suburban areas✓ Correct
COnly farming communities
DOnly areas with median income below poverty level
Explanation
USDA Rural Development loans are available for eligible rural and certain suburban areas, providing 100% financing to buyers who meet income and property location requirements.
People Also Study
Related Louisiana Questions
- Which type of loan program is specifically designed to help low- to moderate-income buyers in rural Louisiana with 100% financing?Finance
- A Louisiana homebuyer uses a USDA Rural Development loan. This type of loan is designed for:Finance
- A Louisiana buyer applies for a USDA Rural Development Guaranteed Loan. A key eligibility requirement is that the property must be:Finance
- A VA loan benefit is available to:Finance
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.
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.
Study This Topic
Practice More Louisiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Louisiana Quiz →