Finance
Indiana lenders offering FHA loans must ensure the property meets which standard at the time of appraisal?
ANo specific standards — FHA loans can be used for any property
BFHA Minimum Property Standards (MPS) — the property must be safe, sound, and secure✓ Correct
CENERGY STAR efficiency standards
DOnly local building code compliance
Explanation
FHA-insured properties must meet HUD's Minimum Property Standards (MPS) — the property must be safe (free from health hazards), sound (structurally sound), and secure (adequately maintained). Properties that fail these standards require repairs before FHA financing can be completed.
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