Which statement about USDA Rural Development loans is true regarding down payments?

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Multiple Choice

Which statement about USDA Rural Development loans is true regarding down payments?

Explanation:
USDA Rural Development loans are designed to make homeownership affordable in eligible rural areas by offering 100% financing, so no down payment is required at closing. Borrowers typically pay closing costs plus a USDA guarantee fee (upfront and/or financed) and ongoing annual guarantee fees, but the loan itself can be secured without a down payment. This is why the statement that no down payment is required is the true one. Down payment percentages like 5%, 10%, or 20% are associated with other loan programs, not the standard USDA Rural Development loan.

USDA Rural Development loans are designed to make homeownership affordable in eligible rural areas by offering 100% financing, so no down payment is required at closing. Borrowers typically pay closing costs plus a USDA guarantee fee (upfront and/or financed) and ongoing annual guarantee fees, but the loan itself can be secured without a down payment. This is why the statement that no down payment is required is the true one. Down payment percentages like 5%, 10%, or 20% are associated with other loan programs, not the standard USDA Rural Development loan.

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