A borrower wants to purchase a home in a town with a population of 40,000 people. Which factor would most likely determine USDA eligibility for this property?
Correct Answer
B) The specific USDA rural designation for that area
USDA eligibility is determined by specific rural designations, not just population size. While towns over 35,000 are generally ineligible, some areas with populations between 10,000-35,000 may qualify if they are rural in character and not part of a metropolitan area. The specific USDA designation is what matters.
Why This Is the Correct Answer
USDA eligibility is determined by specific rural designations, not just population size. While towns over 35,000 are generally ineligible, some areas with populations between 10,000-35,000 may qualify if they are rural in character and not part of a metropolitan area. The specific USDA designation is what matters.
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A condominium project has 85% of its units sold to owner-occupants and 15% to investors. The project has been approved by FHA for 2 years. A borrower wants to purchase a unit with an FHA loan. What additional requirement must be met?
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A lender charges a borrower 1.5% of the loan amount as an origination fee on a $300,000 loan. What is the origination fee?