Which statement about USDA guaranteed loans is NOT accurate?
Correct Answer
C) They are designed for high-income borrowers buying second homes in resort areas
Option B is not accurate. USDA guaranteed loans are designed for eligible owner-occupants in rural areas and include income limits, so they are not a program for high-income second-home buyers in resort markets.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
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