Which program offers no down payment in rural/eligible areas and is guaranteed by the government?

Which program offers no down payment in rural/eligible areas and is guaranteed by the government?

• A. USDA loan
• B. FHA loan
• C. VA loan
• D. Conventional loan

Answer: (A)

The concept here is government-guaranteed financing targeted to specific areas. The program that offers no down payment for buyers in rural or eligible areas and is guaranteed by the government is the USDA loan. It is designed to promote homeownership in rural communities by providing 100% financing for qualified borrowers, with the loan guaranteed by the U.S. Department of Agriculture. The property must be located in an area designated as rural or eligible, and there are income and other eligibility requirements. The other loan types either require a down payment (like FHA and conventional loans) or aren’t limited to rural/eligible areas, even though some (like VA) can also offer no down payment.

The concept here is government-guaranteed financing targeted to specific areas. The program that offers no down payment for buyers in rural or eligible areas and is guaranteed by the government is the USDA loan. It is designed to promote homeownership in rural communities by providing 100% financing for qualified borrowers, with the loan guaranteed by the U.S. Department of Agriculture. The property must be located in an area designated as rural or eligible, and there are income and other eligibility requirements. The other loan types either require a down payment (like FHA and conventional loans) or aren’t limited to rural/eligible areas, even though some (like VA) can also offer no down payment.