USDA Loans

Question 1

What are USDA (Section 502 Loans)?

Answer 1

USDA loans (Section 502 Loans) are 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

Question 2

The USDA loans are ____-income, _____-occupied, ___ year fixed-rate loans.

Answer 2

lower; owner; 30

Question 3

USDA home loans are also known as ____or _____ development loans.

Answer 3

farm loans or rural

Question 4

USDA loans are also known as?

Answer 4

Section 502 Loans

Question 5

Who are USDA loans funded by?

Answer 5

USDA loans are funded by the Department of Agriculture.

Question 6

What is the prepayment penalty on a USDA loan?

Answer 6

There is no prepay penalty on USDA loans.

Question 7

What type is insurance is required on the mortgage for a USDA loan?

Answer 7

Insurance - USDA Mortgages do not have PMI, but instead have an upfront premium/funding fee that is meant to cover any losses incurred by borrowers who may default.

Question 8

Guaranteed loan applicants may have an income of up to ____% of __________________.

Answer 8

115; Area Medium Income (AMI).

Question 9

What are the debt ratios for USDA Loan?

Answer 9

Debt Ratios: USDA utilizes debt-to-income ratios of 29% for housing and 41% for total debt

Question 10

What is the late fee for a USDA loan?

Answer 10

The late fee is 4 % of the monthly P& I.