FinanceIntermediateDelaware Exam
Which type of mortgage loan is insured by the Federal Housing Administration (FHA)?
AConventional conforming loan
BVA loan
CFHA-insured loanCorrect
DUSDA Rural Development loan
Why FHA-insured loan Is Correct
Answer C: FHA-insured loan
FHA-insured loans are backed by the Federal Housing Administration, which insures the lender against borrower default. FHA loans typically require lower down payments than conventional loans.
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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