Which statement about USDA Rural Development loan income limits is most accurate?
Correct Answer
B) Income limits vary by geographic area and household size
USDA income limits vary by geographic area based on local area median income and are adjusted for household size. Different areas have different income thresholds, and larger households have higher income limits.
Why This Is the Correct Answer
USDA income limits vary by geographic area based on local area median income and are adjusted for household size. Different areas have different income thresholds, and larger households have higher income limits.
More Mortgage Knowledge Questions
A borrower is comparing two loan offers: Loan A has no points and 4.5% interest rate, Loan B has 2 points and 4.0% interest rate. The loan amount is $400,000. How much will the borrower pay upfront for the points on Loan B?
A lender charges a 1% origination fee on all loans. For a borrower obtaining a $250,000 mortgage, what is the maximum origination fee that can be charged without violating the points and fees test under the ATR/QM rule for a first-lien mortgage?
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A borrower is considering paying discount points to reduce their interest rate. Each point costs 1% of the loan amount and reduces the rate by 0.25%. On a $300,000 loan, how much would the borrower pay for 2 discount points?
A borrower asks about the difference between discount points and origination fees. What is the most accurate explanation?
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