Which of the following loan purposes is NOT applicable for USDA loans?

The correct choice highlights that USDA loans do not allow for cash-out refinances. USDA Rural Development loans are specifically designed to assist low- to moderate-income individuals or families in acquiring homes in rural areas, focusing on promoting homeownership and improving the quality of life in those communities.

The primary purpose of USDA loans is to facilitate the purchase of new or existing homes and provide refinancing options aimed at lowering interest rates or changing loan terms to benefit the homeowner. However, cash-out refinancing entails borrowing against the equity of a home and converting that equity into cash, which is not aligned with the goal of these loans. USDA programs are targeted towards supporting home purchases and refinances that sustain or enhance homeownership status, rather than providing funds for other personal or non-housing related expenses.

Other loan purposes such as purchasing property, owner occupancy requirements, and refinancing under specific circumstances are integral to USDA loans and reflect their mission to promote affordable housing while ensuring that the properties financed are primarily for habitation by the borrowers.