Direct RHS Loans may have which loan term options?

• A. 30 years
• B. 33 years or 38 years
• C. 15 years or 20 years
• D. 25 years or 40 years

Answer: (B)

Direct RHS Loans are designed to keep housing affordable for rural borrowers, so they use longer repayment periods. The program offers 33-year or 38-year loan terms, which lower monthly payments compared with shorter terms. This aligns with the goal of making homeownership feasible for applicants with varying income levels in rural areas. Other term lengths like 15, 20, 25, 30, or 40 years aren’t the standard options for these Direct USDA loans, which is why 33 years or 38 years is the correct pairing. Keep in mind that extending the term reduces monthly payments but increases the total interest paid over the life of the loan.