Mark is a first-time homebuyer in Syracuse looking at a single-family house. He wants to use an FHA loan for his purchase. What type of property ownership will Mark receive with this purchase?
Correct Answer
C) Fee simple ownership of real property
When purchasing a single-family house with an FHA loan, Mark will receive fee simple ownership, which is full ownership of real property. FHA loans are mortgages that can only be used for real property purchases, and single-family homes convey fee simple ownership through a deed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
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