Escrow & Title
In Colorado, when a buyer purchases property using an FHA loan, the lender requires:
AA. Only an owner's title insurance policy
BB. A lender's title insurance policy (mortgagee policy) to protect the lender's interest✓ Correct
CC. No title insurance is required for FHA loans
DD. Both a title policy and a home warranty
Explanation
FHA loans (like most lender-required mortgage loans) require a lender's title insurance policy (mortgagee policy) at closing to protect the lender's interest. This is separate from the owner's title policy, which is optional but strongly recommended for the buyer.
Related Colorado Escrow & Title Questions
- A Colorado property is sold and the deed is signed but not yet recorded. Before recording, a second buyer who has no knowledge of the first sale purchases the same property and immediately records their deed. Under Colorado's race-notice statute, who prevails?
- Colorado's 'race-notice' recording statute protects a subsequent purchaser who:
- What is the difference between a title insurance commitment and a title insurance policy?
- In Colorado, which of the following instruments is recorded to create a lien on real property to secure a loan?
- In Colorado, who typically selects the title company in a residential real estate transaction?
- In Colorado, 'actual notice' means:
- In Colorado, a 'special warranty deed' differs from a general warranty deed in that it:
- Colorado uses the public trustee foreclosure process, which means:
Practice More Colorado Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →