Which of the following best describes a USDA Rural Development (Section 502) loan?
Correct Answer
B) A 100% financing loan for eligible rural residential properties with no down payment required
USDA Section 502 Guaranteed Rural Housing loans are designed to help low-to-moderate income borrowers purchase homes in eligible rural areas, including many rural communities in Montana. A key feature is 100% financing — no down payment is required. Borrowers must meet USDA income limits and the property must be located in a USDA-designated rural area. The program is not limited to farms; it covers standard single-family residences.
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