Federal Housing Administration (FHA) Loans

Question 1

FHA requires __ months of ownership before reselling.

Answer 1

3 months

Question 2

FHA borrowers must have a valid ________.

Answer 2

Social Security Number

Question 3

In an FHA loan — the upfront mortgage insurance premium (UFMIP) for a 15-year and 30-year purchase and refinance transactions are ___% of the loan amount.

Answer 3

1.75%

Question 4

FHA loans have a minimum down payment of ____ with a credit score of _______. (The down payment can be a gift from a relative.)

Answer 4

3.5% / 580 or above

Question 5

In a FHA loan, Sellers may contribute up to __% of the lesser of the property’s sales price or the appraised value toward closing costs.

Answer 5

6%

Question 6

In order to be approved for an FHA loan, borrowers must have a front end ratio of __% and a back end ration of __%.

Answer 6

31% / 43%

Question 7

On a FHA Loan, if credit score is between 500-579, the minimum down payment is __%.

Answer 7

10%

Question 8

FHA loans have a __% late fee of the P and I only.

Answer 8

4%

Question 9

The Federal Housing Administration (FHA) is a government agency within the ________________.

Answer 9

Department of Housing and Urban Development (HUD)

Question 10

FHA loans have a required ________________ and a ________________ regardless of the down payment amount.

Answer 10

Up Front Mortgage Insurance Premium (UFMIP) / Monthly Insurance Premium (MIP)

Question 11

The FHA provides __% insurance to its approved lenders.

Answer 11

100%