USDA Loans Quiz

1. What does USDA stand for in mortgage lending?

United States Development Agency United States Department of Agriculture US Domestic Savings Association Urban Development Service Agency

2. What type of areas qualify for USDA loans?

Major metropolitan areas only Rural areas as defined by USDA Only areas with population under 1,000 Coastal areas only

3. What is the down payment requirement for a USDA loan?

20% 10% 0% 5%

4. What is the USDA guarantee fee?

An annual fee similar to PMI A one-time fee at closing A monthly insurance payment A property tax

5. What are the income limits for USDA loans?

No income limits Yes, based on area median income Only for low-income borrowers $50,000 maximum

6. Can USDA loans be used for new construction?

No, only existing homes Yes, with a qualified builder Only if the home is already built Only for duplexes

7. What is the maximum USDA loan amount?

$200,000 Based on the borrower's ability to repay and area limits $500,000 No limit

8. Is mortgage insurance required for USDA loans?

No, never Yes, both an upfront guarantee fee and annual fee Only for loans over $300,000 Only for investment properties

9. What credit score is typically required for USDA loans?

760 640 or higher 500 No credit score required

10. What is the USDA Single Family Housing Direct Loan program?

A loan directly from the USDA with subsidized rates A guaranteed loan program A grant program An insurance program

Quiz Results