Which of the following is a requirement for USDA Rural Housing loans?

The requirement that the applicant must be a U.S. citizen or a qualified alien is essential for USDA Rural Housing loans because these loans are designed to serve individuals and families who are legally residing in the U.S. The USDA program aims to assist low- to moderate-income households in gaining access to affordable housing in rural areas. By setting this eligibility criterion, the program ensures that the benefits are provided to those who meet the legal residency requirements, and it helps prevent misuse of government assistance programs.

The other options do not align with the USDA loan program’s criteria, such as requiring a college degree, which could unnecessarily limit access to assistance for many eligible households. Additionally, USDA loans specifically target rural areas, not urban locations, and the program does not impose an employment duration requirement like five years, allowing for a broader range of applicants who might be new to the workforce or transitioning between jobs.