Who insures the "USDA loan" or "Section 502 loan"?

The correct answer is that the U.S. Department of Agriculture insures the "USDA loan" or "Section 502 loan." This type of loan is specifically designed to assist low-to-moderate income individuals or families in purchasing homes in rural areas. The USDA provides backing for these loans, allowing lenders to offer financing options to eligible borrowers who may not qualify for traditional mortgages.

The program's goal is to improve access to homeownership in rural communities, promoting not only individual financial growth but also enhancing the quality of life in those areas. The insurance provided by the USDA enables lenders to offer favorable loan terms, including lower down payments and interest rates.

The other options pertain to different programs and agencies: the Veteran's Land Board is most often associated with loans for veterans in Texas, the Department of Veteran's Affairs administers veteran loan programs but does not handle USDA loans, and the Federal Housing Administration focuses on insuring loans for a broader range of borrowers, primarily in urban settings. Thus, the U.S. Department of Agriculture is the only agency that specifically insures Section 502 loans.