A Borrower Who Qualifies for an FHA or VA Loan

question 55

Multiple Choice

A borrower who qualifies for an FHA or VA loan enjoys the advantage that

• A) the mortgage payment is much lower.
• B) only a very low or zero down payment is required.
• C) the cost of private mortgage insurance is lower.
• D) the government holds the lien on the property.

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Definitions:

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and internal conflicts.

Displacement

In psychology, a defense mechanism where an individual redirects emotional impulses from a real object to a safer substitute target.

Sublimation

A defense mechanism where socially unacceptable impulses or idealizations are transformed into socially acceptable actions or behavior.

Denial

A psychological defense mechanism where an individual refuses to accept reality or facts, thereby avoiding facing uncomfortable emotions.