FinanceIntermediateAlaska Exam

FHA loans in Alaska are distinguished from conventional loans primarily because FHA loans:

ARequire no down payment
BAre insured by the federal government against lender lossesCorrect
CHave lower interest rates than all conventional loans, in general
DAre only available for first-time homebuyers

Why Are insured by the federal government against lender losses Is Correct

Answer B: Are insured by the federal government against lender losses

FHA loans are insured by the Federal Housing Administration, which protects lenders against borrower default. This insurance allows FHA to set lower down payment requirements (as low as 3.

Exam Tip: Finance

Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.

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