FinancingGovernment_backed_loansHARD
A real estate agent is comparing government-backed loan programs for a client. All of the following statements are correct EXCEPT.
Correct Answer
A) USDA loans are available in any location regardless of whether the area is designated rural
USDA loans are specifically limited to eligible rural and suburban areas as designated by the USDA. They are not available in any location; geographic eligibility is a core requirement.
Answer Options
A
USDA loans are available in any location regardless of whether the area is designated ruralB
VA loans require no private mortgage insurance but may require a funding feeC
FHA loans require mortgage insurance premiums (both upfront and annual)D
FHA loans are insured by the Federal Housing Administration, not directly lent by itWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Related Topics & Key Terms
Key Terms:
FHA_loanVA_loanUSDA_loancomparisonreverse_questionfinancing
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