Question

Federal Housing Administration (FHA) loans differ from conventional loans in a number of ways. All of the following statements regarding FHA loans are true except A) FHA loans are targeted toward first-time homebuyers who are in slightly weaker financial circumstances than the typical prime conventional borrower. B) FHA loans require higher credit scores than are needed for prime conventional loans. C) FHA loans contain lower limits on their maximum size than are available through conforming conventional loans. D) FHA loans are more tolerant in terms of qualifying debt-to-income ratios.

Answer 1

Answer:

FHA loans require higher credit scores than are needed for prime conventional loans.

Explanation:

As FHA are aimed to help persons that cannot get a credit in the usual financial system the score needed for acquiring the credit is lower than in conventional loans.