A family wants to buy a home in a designated rural area. They have moderate income and cannot afford a down payment. Which government loan program is specifically designed for rural homebuyers with moderate incomes?
Correct Answer
C) USDA Rural Development guaranteed loan
The USDA Rural Development guaranteed loan program is specifically designed for moderate-income buyers purchasing homes in eligible rural and suburban areas. It offers 100 percent financing with no down payment requirement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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