Finance
When an FHA loan is assumed by a new buyer in Texas, the new buyer must:
AAutomatically have the same interest rate as the original borrower
BQualify with the FHA lender, who must approve the assumption✓ Correct
CPay off all previous FHA loans first
DObtain a new FHA appraisal regardless of the original appraisal
Explanation
FHA loans originated after December 1989 are generally assumable, but the assuming buyer must be creditworthy and must qualify with the lender. The lender and FHA must approve the assumption. Assumption without approval can trigger the due-on-sale clause.
Related Texas Finance Questions
- A Texas buyer qualifies for a conventional loan with a 10% down payment. The lender requires PMI. The annual PMI premium is 0.7% of the loan amount. On a $300,000 purchase, what is the monthly PMI cost?
- A Texas USDA Guaranteed loan has a maximum income limit. This limit is based on:
- A Texas buyer's lender requires a 'title report' before funding. This is because the lender wants to ensure:
- Texas's 'Homestead Act' limits the ability to foreclose on a primary residence. This protection, combined with Texas's lack of a state income tax, makes Texas unique because:
- In Texas, the foreclosure process under a deed of trust requires the trustee to send written notice to the borrower at least how many days before the foreclosure sale?
- A Texas mortgage with a due-on-sale clause means:
- Texas law regulates 'prepayment penalties' on home loans. For home equity loans under Texas Constitution Article XVI, prepayment penalties are:
- In Texas, the usury laws set maximum interest rates on loans. For most consumer loans, the maximum rate is governed by:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →