Finance
An FHA loan differs from a conventional loan primarily because FHA loans are:
AFunded directly by the federal government
BInsured by the Federal Housing Administration, allowing lower down payments✓ Correct
CAvailable only to first-time homebuyers
DNot subject to appraisal requirements
Explanation
FHA loans are not funded by the government but are insured by the Federal Housing Administration. This insurance allows lenders to offer loans with lower down payments (as low as 3.5%) and more flexible credit requirements than conventional loans.
Related Texas Finance Questions
- A Texas homebuyer applies for a USDA Rural Development Guaranteed Home Loan. This loan program is designed for:
- A Texas buyer qualifies for a USDA Rural Development guaranteed loan. This type of loan is available for properties:
- The primary purpose of PMI (Private Mortgage Insurance) in Texas is to:
- Under Texas community property law, for a married person to convey real property, generally:
- When a Texas lender issues a commitment letter, it means:
- The Home Mortgage Disclosure Act (HMDA) requires Texas lenders to:
- Texas law allows seller financing using a Contract for Deed (also called Land Contract). A key risk for Texas buyers in a Contract for Deed is:
- A Texas seller offers to 'carry back' part of the purchase price as a second lien. This type of financing is called:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →