Finance
Which type of loan insures the lender against loss and allows borrowers to purchase with as little as 3.5% down with a 580+ credit score?
AConventional loan
BVA loan
CFHA loan✓ Correct
DUSDA loan
Explanation
FHA loans are insured by HUD's Federal Housing Administration and allow qualified borrowers to purchase with as little as 3.5% down (with a 580+ credit score).
Related Alabama Finance Questions
- Which of the following best describes negative amortization?
- A 'no-closing-cost' loan typically means:
- A cooperative financing arrangement called a 'piggyback loan' involves:
- The margin in an ARM loan is:
- Under RESPA, a lender may not require a buyer to purchase title insurance from a specific company affiliated with the lender unless:
- Which of the following is an example of a non-conforming loan?
- The right of a lender to apply collateral property toward the debt upon default is called the:
- In Alabama, what instrument is primarily used to secure a mortgage loan with real property as collateral?
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →