Finance
A Maine property buyer assumes the seller's FHA mortgage. For FHA loans originated after a certain date, the lender:
AMust allow all assumptions
BMay require the assuming buyer to qualify and approve the assumption✓ Correct
CAutomatically releases the original borrower from liability
DIs prohibited from charging fees for the assumption
Explanation
Modern FHA loans (originated after December 1, 1986) have due-on-sale provisions, but FHA still allows assumptions if the assuming buyer qualifies. The lender must approve the assumption and may release the original borrower if the new buyer qualifies.
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