47.5k views
5 votes
All of the following statements about a section 203 (b) FHA insured mortgage loan are accurate, EXCEPT:

a. the loan may be assumed by the borrower who is qualified by the lender
b. the borrower must be allowed to prepay the loan without paying a penalty
c. HUD/FHA sets the interest rate of the loan
d. the loan must be fixed rate and have a term of 30 years or less.

User Circumflex
by
8.6k points

1 Answer

0 votes

Final answer:

Statement c about an FHA insured mortgage loan is inaccurate as the interest rate is determined by the lender, not HUD/FHA.

Step-by-step explanation:

All of the following statements about a Section 203(b) FHA insured mortgage loan are accurate, except for statement c which says that HUD/FHA sets the interest rate of the loan. In reality, the interest rate on an FHA mortgage loan is determined by the lender, not by HUD/FHA. The other statements, a, b, and d, are correct.

User Chemikadze
by
7.7k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.