Finance
What is the primary advantage of an FHA loan for a South Carolina first-time homebuyer?
ANo mortgage insurance required
BLower down payment requirements (as low as 3.5%)✓ Correct
CNo credit score requirements
DInterest rates guaranteed by the federal government
Explanation
FHA loans allow down payments as low as 3.5% for borrowers with credit scores of 580 or higher, making homeownership more accessible for first-time buyers and those with limited savings.
Related South Carolina Finance Questions
- In South Carolina, what is the primary purpose of a 'mortgage commitment letter'?
- A South Carolina lender charges 2% of the loan amount as an origination fee on a $250,000 loan. How much is this fee?
- Which federal law requires lenders to provide borrowers with a Loan Estimate within 3 business days of receiving a loan application?
- What does PMI (Private Mortgage Insurance) protect in a South Carolina home loan?
- A graduated payment mortgage (GPM) features:
- What is the secondary mortgage market's primary function in South Carolina real estate financing?
- What is a 'due-on-sale clause' in a South Carolina mortgage?
- The Truth in Lending Act (TILA) requires lenders to disclose the:
Practice More South Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Carolina Quiz →