Which group is unlikely to qualify for a USDA loan due to asset availability?

The selection of borrowers with high liquid assets as unlikely to qualify for a USDA loan is correct because one of the primary criteria for these loans is the need for the applicant to demonstrate a lack of sufficient resources. USDA loans are designed to assist low- to moderate-income individuals or families in obtaining affordable housing in designated rural areas.

When a borrower has high liquid assets, it may indicate that they possess sufficient financial resources to purchase a home through other means, thereby disqualifying them from this particular program aimed at supporting those who truly require financial assistance. Essentially, the USDA loan program is focused on providing support to those who may not have substantial savings or liquid assets to draw upon, rather than those who are already well-resourced.

In contrast, low-income borrowers often have fewer resources and meet the income eligibility guidelines for the program, first-time homebuyers may still benefit from these loans as they can face challenges in accumulating the funds for a down payment, and non-profit organizations typically have different funding mechanisms and do not fit the profile of individual borrowers targeted by USDA lending requirements.