Finance
What is an assumable FHA loan in Nevada and what are the requirements?
AFHA loans are never assumable
BFHA loans originated after December 1986 are assumable by creditworthy buyers who qualify under FHA guidelines and receive lender approval — potentially attractive when FHA rates are below market✓ Correct
CAny buyer can assume an FHA loan without lender approval
DFHA loans can only be assumed by Nevada residents
Explanation
Post-1986 FHA loans are assumable with lender approval and the new borrower must qualify under FHA guidelines. When current market rates are higher than the existing FHA rate, an assumable FHA loan can be a significant marketing advantage for sellers and savings for buyers in Nevada.
Related Nevada Finance Questions
- What is 'points' in a mortgage transaction and how do they affect the cost of a Nevada loan?
- What does the Truth in Lending Act (TILA) require Nevada lenders to disclose?
- What is a 'non-recourse loan' in Nevada and how does it differ from a recourse loan?
- What is a bridge loan in Nevada real estate?
- What is the purpose of the Nevada Mortgage Lending Division?
- What is a USDA Rural Development loan and does it apply in Nevada?
- What is the 'due-on-sale clause' (also called alienation clause) in a Nevada mortgage or deed of trust?
- A VA loan is available to eligible veterans and offers:
Practice More Nevada Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nevada Quiz →