The Affordability Ratios That Are Used to Qualify Applicants for FHA

question 9

True/False

The affordability ratios that are used to qualify applicants for FHA loans are more stringent than those used for conventional loans.

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Definitions:

Market Equilibrium

Occurs when the quantity of goods demanded by consumers equals the quantity of goods supplied by producers, resulting in a stable market price.

Price

The amount of money required to purchase a good or service, typically determined by supply and demand.

Quantity

The amount or number of a product or service that is available for use or sale.

Technological Advance

Innovations and improvements in technology that increase production efficiency or introduce new goods and services.