Finance
An FHA loan is best described as:
AA loan made directly by the federal government
BA loan insured by the Federal Housing Administration, allowing lower down payments✓ Correct
CA loan only for first-time homebuyers
DA loan with no mortgage insurance requirement
Explanation
FHA loans are made by private lenders but insured by the Federal Housing Administration. They allow down payments as low as 3.5% and are accessible to borrowers with lower credit scores.
Related California Finance Questions
- A loan that requires only interest payments during the loan term with the entire principal due at maturity is called a:
- A 'due-on-sale' clause in a deed of trust allows the lender to:
- A 'hard money loan' in California is typically characterized by which of the following?
- What is a 'hard money loan'?
- What is a 'loan discount point'?
- What is the Truth in Lending Act (TILA) designed to do?
- What is the difference between APR and interest rate?
- A 'purchase money mortgage' is best described as:
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →