A buyer with a 620 credit score is purchasing a single-family home in a census tract that qualifies for multiple loan programs, including USDA. The buyer wants to minimize out-of-pocket costs at closing. Which loan program feature would an agent most accurately cite when comparing down payment requirements across these four options?
Correct Answer
D) USDA Rural Development guaranteed loans require no down payment for income-eligible buyers in designated rural areas
USDA Section 502 Guaranteed Rural Housing loans require zero down payment for eligible borrowers purchasing in USDA-designated rural areas. This is the only program among the four options that eliminates the down payment entirely without requiring a second loan or assistance program to cover it, making it the most accurate answer when the goal is minimizing upfront costs for a buyer who qualifies.
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