FHA Loans Quiz

Test your knowledge of FHA loans and their requirements for homebuyers.

1. What does FHA stand for?

Federal Housing Administration First Home Association Federal Home Administration Family Housing Authority

2. What is the minimum down payment required for an FHA loan?

20% 3% 3.5% 0%

3. What is MIP in relation to FHA loans?

Mortgage Interest Payment Mortgage Insurance Premium Monthly Interest Principal Main Insurance Policy

4. What is the maximum FHA loan limit in 2024 for most areas?

$500,000 $1,000,000 Varies by county, typically around $500,000-$1,000,000 $2,000,000

5. What credit score is typically required for an FHA loan?

760 580 500 700

6. Can you use an FHA loan to purchase a multi-family home?

No, FHA loans are only for single-family homes Yes, up to 4 units with owner-occupancy Only duplexes Only commercial properties

7. What is the upfront MIP cost for FHA loans?

0.5% of the loan amount 1.75% of the loan amount 3% of the loan amount 5% of the loan amount

8. How long do you pay monthly MIP on an FHA loan with less than 10% down?

5 years 10 years For the life of the loan 2 years

9. What is an FHA 203(k) loan?

A loan for first-time homebuyers only A rehabilitation loan that includes home repairs in the mortgage An energy efficiency loan A reverse mortgage

10. What is the debt-to-income ratio limit for FHA loans?

43% maximum 50% maximum 60% maximum No limit

Quiz Results

Check your answers below:

1. Answer: (a) Federal Housing Administration

2. Answer: (c) 3.5%

3. Answer: (b) Mortgage Insurance Premium

4. Answer: (c) Varies by county, typically around $500,000-$1,000,000

5. Answer: (b) 580

6. Answer: (b) Yes, up to 4 units with owner-occupancy

7. Answer: (b) 1.75% of the loan amount

8. Answer: (c) For the life of the loan

9. Answer: (b) A rehabilitation loan that includes home repairs in the mortgage

10. Answer: (a) 43% maximum