USDA LOANS Flashcards
1
Q
- USDA loans (Section 502 Loans) are
A
partially guaranteed by the US government, allow for 100% financing, have a one-time funding fee that is paid at closing, and have no required monthly mortgage insurance.
2
Q
- The USDA loans are
A
lower-income, owner-occupied, 30 year fixed-rate loans.
3
Q
- USDA home loans are
A
also known as farm loans or rural development loans.
4
Q
- Also known as Section 502 loans.
A
Rural Home Loans USDA
5
Q
- USDA loans are funded by
A
the Department of Agriculture.
It’s in the name
6
Q
- There is no
A
prepay penalty on USDA loans.
7
Q
- Insurance - USDA Mortgages do not have
A
PMI
(but instead have an upfront premium/funding fee that is meant to cover any losses incurred by borrowers who may default.)
8
Q
- Guaranteed loan applicants may have an income of up to
A
115% of Area Medium Income (AMI).
9
Q
- Debt Ratios: USDA utilizes debt-to-income ratios of
A
29% for housing and 41% for total debt.
10
Q
- The late fee is ___ % of the monthly P& I.
For USDA Loans/Section 502
A
4 % of the monthly P& I.
