Ch 8 Government Loans Flashcards
The federal housing administration was established
In 1934
Why was the federal housing administration established?
To improve the construction and financing of housing
The federal housing administration is a part of
The United States, Department of housing and urban development
FHA, provides mortgage insurance on
Single family, multi family and manufactured homes
in a FHA loan the down payment can be as low as
3.5%
If the down payment is low as 3.5%, then what is the loan to value
96.5%
The FHA is a mortgage insurance program that protects the ______
Lender from loss in the event of default by the borrowers by ensuring the full amount of the loan
What are two advantages of FHA loans
Qualifying ratios are more lenient, L TVs are very high, allowing borrowers with little money for a down payment to purchase a property
What is the most preferred FHA insured loan program?
203K purchase and rehabilitation program
What is the 203K loan?
A specialize renovation or construction loan that allows homebuyers and home owners to finance both the purchase of a house, and the cost of his rehabilitation through a single mortgage, to finance the rehabilitation of their existing home
How much does the 203K program allow for renovation
Up to $35,000
The maximum loan to value ratio on an FHA loan is
96.5%
When a loan is funded the FHA charges
An upfront mortgage insurance premium that is paid at closing or added to the loan at funding
True or false: non-US citizens, with no lawful residency in the US are not eligible for FHA insured mortgages
True
In order for someone to gift funds, the donor must be
A relative, domestic partner or fiancé
