In California, a USDA Rural Development loan is designed for homebuyers in eligible areas. Which characteristic distinguishes USDA loans from conventional financing?
Correct Answer
D) USDA loans allow 100% financing with no down payment for eligible rural properties
USDA Rural Development loans offer 100% financing (no down payment) for eligible borrowers purchasing homes in designated rural areas. Income limits apply, and the property must be in a USDA-eligible area, which includes many California communities outside major metro areas.
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