Finance
A USDA Rural Development loan in North Carolina is designed for:
ALuxury home purchases
BLow-to-moderate income buyers in eligible rural areas✓ Correct
CCommercial agricultural land
DSecond home purchases
Explanation
USDA Rural Development loans offer 100% financing for low-to-moderate income buyers purchasing homes in eligible rural and suburban areas of North Carolina.
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Key Terms to Know
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.
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.
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