[Answer] Which of the following are true for an FHA loan?

Answer: The mortgaged real estate must be appraised by an approved FHA appraiser. Prepayment penalties are optional. Points can be charged by the lender and paid by either buyer or seller or both. A buyer may pay more than the appraised value if he pays the difference in cash.
Which of the following are true for an FHA loan?

An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan that is provided by an FHA-approved lender. FHA insured loans are a type of federal assistance. They have historically allowed lower-income Americans to borrow money to purchase a home that they would not otherwise be able to afford. Because this type of loan is more geared towards new house owners than real estate investors FHA loans are different from conventional loans in the sense that the house must be

During the Great Depression many banks failed causing a drastic decrease in home loans and ownership. At that time most home mortgages were short-term (three to five years) with no amortization and balloon instruments at loan-to-value (LTV) ratios below sixty percent. This prevented many working and middle-class families from being able to afford home ownership. The banking crisis of the 1930s forced all lenders to retrieve due mortgages; refinancingwas not available and many borrowers now unemployed…

Federal Housing Administration – Wikipedia …

Leave a Reply