A borrower is applying for a USDA Rural Development loan. Which of the following best describes the primary eligibility requirement for the property location?
Correct Answer
C) The property must be located in a designated rural area as defined by USDA
USDA Rural Development loans require the property to be located in a USDA-designated rural area. These areas are specifically defined by USDA and may include some suburban areas and towns with populations under 35,000. The designation is not simply based on city limits or distance from metropolitan areas.
Why This Is the Correct Answer
USDA Rural Development loans require the property to be located in a USDA-designated rural area. These areas are specifically defined by USDA and may include some suburban areas and towns with populations under 35,000. The designation is not simply based on city limits or distance from metropolitan areas.
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On the URLA Form 1003, Section I asks about the borrower's intended occupancy. A borrower indicates they will use the property as a primary residence but mentions they travel extensively for work and will only be home 3-4 months per year. What additional documentation should the MLO request?
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