Finance
A Maine property buyer applies for a USDA Rural Development loan. This loan type:
ARequires a 5% down payment
BIs available in eligible rural areas with income limits and can offer 100% financing✓ Correct
CIs only for farms over 5 acres
DRequires mortgage insurance equal to 2% annually
Explanation
USDA Rural Development loans are for eligible rural areas, have income limits, and can provide 100% financing (no down payment). Maine has many USDA-eligible communities.
Related Maine Finance Questions
- A Maine reverse mortgage allows a senior homeowner (62+) to:
- A Maine commercial lender requires a debt coverage ratio (DCR) of at least 1.25. A property has an annual NOI of $75,000. The maximum annual debt service the lender will approve is:
- In Maine, the 'Home Equity Conversion Mortgage' (HECM) must be the only mortgage on the property or all other mortgages must be:
- A Maine property going to foreclosure has a senior lien of $280,000 and sells for $310,000 at the foreclosure auction. The foreclosing lender's costs are $12,000. Remaining proceeds distributed to junior lienholders are:
- A Maine homebuyer applies for a conventional mortgage requiring PMI. PMI is typically required when the loan-to-value ratio exceeds:
- Under the Equal Credit Opportunity Act (ECOA), a Maine lender must notify an applicant of a credit decision within:
- What Maine state program assists first responders, veterans, and other qualifying individuals with mortgage assistance?
- Under the Homeowners Protection Act (HPA), a Maine borrower with a conventional loan must be informed of their right to cancel PMI when:
Practice More Maine Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maine Quiz →