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Question 1 of 22
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A loan officer is comparing government loan programs for a client. Which statement correctly describes how these programs protect the lender?
A
Both FHA and VA insure 100% of the outstanding loan balance against borrower default.
B
USDA Section 502 Guaranteed loans are insured by HUD in the same manner as FHA loans.
C
FHA insures the loan with premiums paid by the borrower into an FHA insurance fund, while VA guarantees the lender against loss on a portion of the loan.
D
VA insures the loan and FHA guarantees a portion of it; USDA provides neither insurance nor a guaranty.