Question

Certain mortgage loans contain a due-on-sale clause, which gives the lender the right to terminate the loan at sale of the property. Which of the following types of loans is the most likely to contain a due-on-sale clause?A. Federal Housing Administration (FHA) loanB. Veterans Affairs (VA) loanC. Conventional home loanD. An assumable home loan

Answer 1

Option C, Conventional home loan

Explanation:

A traditional theory or a conventional loan is any kind of debt which the government agency such as the Federal housing administration (FHA), the United States, is not providing or obtaining.

The Veterans ' Administration (VA) or even the USDA Rural Housing Program is, however, accessible by private lenders (banks, credit unions, lending firms) or by government-sponsored businesses, either the Federal government mortgage organisation or the Lending Company Federal Home.

Potential lenders must fill up their official loan application, supply the documents required, credit history and present credit score. Conventional loan levels appear to surpass that of government-supported mortgages,

for example, FHA loans.