What is the maximum household income percentage of the AMI allowed for a USDA 502 loan?

The correct choice for the maximum household income percentage of the Area Median Income (AMI) that is allowed for a USDA 502 loan is 115%. This means that borrowers whose household income does not exceed 115% of the AMI for their area can qualify for this loan program, which is designed to assist low- to moderate-income families in purchasing homes in rural areas.

This particular threshold allows a broader range of families to access the benefits of the USDA loan program, which includes favorable terms such as no down payment requirement and competitive interest rates. The USDA's intention is to support families in achieving homeownership, thereby promoting stable communities in rural areas.

Options that suggest different AMI percentages either restrict eligibility too much or do not align with the guidelines set by the USDA. Thus, understanding this specific threshold is crucial for potential borrowers looking to benefit from the USDA 502 loan program.