Government-backed Home Loans and Loan Eligibility Quiz

FHA loans are backed by the Federal Housing Administration.

A credit score of 620 is typically required for a VA loan.

The FHA loan is specifically designed for low-to-moderate-income borrowers.

The primary purpose of VA loans is to help military veterans and their families buy homes.

FHA loans have more flexible credit requirements compared to conventional loans.

The maximum DTI ratio typically allowed for FHA loans is 43%.

A minimum credit score is not a requirement for USDA loan eligibility.

The maximum LTV ratio for an FHA loan for a single-family home is 96.5%.

USDA loans are designed for rural homebuyers.

PMI in conventional loans protects lenders against default for loans with low down payments.

VA loans do not require mortgage insurance.

The USDA Rural Development Guaranteed Housing Loan Program requires borrowers to meet certain income limits.

Conventional loans require PMI for down payments below 20%.

Credit score primarily determines eligibility for a conventional loan.

Conventional loans have stricter credit requirements compared to government-backed loans.

A property inspection is a common requirement for all government-backed home loans.

The primary responsibility of underwriters in the loan approval process is verifying borrower income.