Which of the following statements comparing FHA and VA loans in California is FALSE?
Correct Answer
A) FHA loans have lower loan limits than VA loans in every California county
Statement A is false. Since the Blue Water Navy Vietnam Veterans Act of 2019 took effect on January 1, 2020, VA loans have no loan limit for veterans with full entitlement — meaning a qualified veteran can finance any loan amount without a VA-imposed cap. FHA loans, by contrast, are subject to county-level conforming loan limits set annually by HUD. Because VA effectively imposes no ceiling for full-entitlement borrowers, it is categorically incorrect to say FHA limits are lower than VA limits in every California county.
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A real estate agent in California is advising clients about various loan programs. All of the following are accurate statements about the Cal-VET loan program EXCEPT:
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A buyer with a 620 credit score is purchasing a single-family home in a census tract that qualifies for multiple loan programs, including USDA. The buyer wants to minimize out-of-pocket costs at closing. Which loan program feature would an agent most accurately cite when comparing down payment requirements across these four options?