All of the following are true of FHA loans, except
A) they are provided by private lenders but guaranteed by the FHA.
B) they enable lower- and middle-income individuals to obtain mortgage financing.
C) they are required for mortgages larger than $300,000.
D) the borrower will have to escrow taxes and insurance.

Question

Quizplus · Accepted Answer

FHA loans are not specifically required for mortgages larger than $300,000. The FHA provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. It does not set limits on the amount of the mortgage based on its size but rather on geographical location and market conditions.

All of the Following Are True of FHA Loans, Except