Which of the following is a requirement that makes a borrower ineligible for a USDA loan?

Having 20% or more of the purchase price available in liquid assets makes a borrower ineligible for a USDA loan because USDA Rural Development loans are specifically designed to assist low- to moderate-income individuals or families in purchasing homes in rural areas. One of the guidelines for eligibility includes having limited financial resources. If a borrower has substantial liquid assets, it may indicate that they are not in the target demographic for these loans, which aim to help those who need financial assistance in achieving homeownership.

The intention behind these guidelines is to direct the benefits of the USDA program towards individuals who might struggle to secure financing through conventional means. Therefore, sufficient liquid assets can disqualify a borrower from being considered for a USDA loan.

In contrast, not having a credit history might raise some concerns with underwriting, but it does not automatically disqualify the borrower. A high debt-to-income ratio often affects eligibility since it indicates financial strain, but it is not categorized the same as liquid assets. Being a first-time homebuyer is generally not a disqualifying factor for USDA loans, as the program is available to both first-time and repeat buyers.