Finance
A Maine buyer obtains an FHA loan. FHA mortgage insurance protects:
AThe buyer against loss of equity
BThe lender against default losses✓ Correct
CThe title company against claims
DThe seller against buyer default
Explanation
FHA mortgage insurance protects the FHA-approved lender (not the borrower) against losses if the borrower defaults. This insurance is what allows FHA to back loans with low down payments.
Related Maine Finance Questions
- The Maine 'homestead protection' under federal bankruptcy law allows a debtor to protect up to what amount of equity in their primary residence?
- A Maine mortgage lender is required to provide the buyer with a Loan Estimate within how many business days of receiving a complete loan application?
- A Maine borrower has a $250,000 mortgage at 7% interest. The first month's interest payment is:
- A Maine FHA loan requires a minimum down payment of 3.5% for borrowers with a credit score of at least:
- In Maine, the 'Home Equity Conversion Mortgage' (HECM) must be the only mortgage on the property or all other mortgages must be:
- A Maine property is purchased with a 30-year fixed-rate mortgage at 6%. After 5 years of payments, the remaining balance is approximately $272,000. The homeowner has paid approximately how much principal in 5 years on a $280,000 loan?
- Maine Housing's Advantage Loan program provides down payment and closing cost assistance to eligible Maine homebuyers in the form of:
- Which federal agency insures deposits in banks and savings institutions up to $250,000?
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