Three buyers are reviewing loan options. Maya is a civilian buying in a USDA-eligible rural area with household income at 112% of area median and almost no down payment. Victor is an eligible Veteran buying a condo in a VA-approved project with no down payment. Renee is self-employed and buying a 14-acre property that does not meet standard conforming guidelines. Which pairing is most accurate?
Correct Answer
D) Maya—USDA guaranteed; Victor—VA-backed; Renee—portfolio or other non-conforming financing
Option A correctly matches each borrower to the most fitting program. Maya fits USDA because of rural location, qualifying income, primary-residence use, and need for no-down-payment financing; Victor fits VA because he is an eligible Veteran purchasing in a VA-approved condo project; and Renee likely needs portfolio or other non-conforming financing because the property falls outside standard conforming guidelines.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
The loan-to-value ratio (LTV) is the percentage of a property's appraised value or purchase price (whichever is lower) that is being financed through a mortgage. LTV = Loan Amount / Property Value.
A comparison of the major mortgage loan types—conventional, FHA, VA, and USDA—covering their eligibility requirements, down payment amounts, mortgage insurance rules, and best use cases.
More Financing Questions
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