Federal Housing Administration (FHA) Loans Differ from Conventional Loans in a Number

question 6

Multiple Choice

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 are more tolerant in terms of qualifying debt-to-income ratios
• C) FHA loans require higher credit scores than are needed for prime conventional loans.
• D) FHA loans contain lower limits on their maximum size than are available through conforming conventional loans.

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that unconditionally—naturally and automatically—triggers a response without any learning needed.

Behaviorism

An approach to psychology that emphasizes the study of observable behavior and the role of the environment and prior experience as determinants of behavior.

Psychoanalysis

A therapeutic approach founded by Sigmund Freud, focusing on unconscious processes and childhood experiences.

Gestalt Psychology

A psychological approach that emphasizes the whole of anything is greater than its parts, focusing on perception and problem-solving.