What must all terms and conditions on the conditional commitment meet?

All terms and conditions on the conditional commitment must meet all specified criteria, which includes local zoning laws, lender requirements, and eligibility requirements. This comprehensive approach ensures that the loan complies with various regulations and guidelines that govern the USDA Rural Housing Loan program.

Local zoning laws are important because they determine how land in a particular area can be used, ensuring that the property is suitable for residential development and complies with the community’s planning and land use regulations.

Lender requirements focus on the specific conditions that a lending institution establishes for approving a loan, which may include creditworthiness, income thresholds, and other financial metrics.

Eligibility requirements pertain to the criteria set by the USDA program for applicants, such as income limits relative to area median income, the property's location in a designated rural area, and other factors that assess whether potential borrowers qualify for assistance.

By stating that all must be met, the correct answer emphasizes the necessity for the conditional commitment to align with these diverse criteria, providing assurance that the loan is appropriate for both the borrower and the lender within the framework of USDA guidelines. This holistic understanding is pivotal for successful loan processing within the USDA Rural Housing Loan program.