Alabama Real Estate Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

Question: 1 / 400

What is the size of the down payment needed for an FHA-insured mortgage?

More than 20%

Exactly 20%

Less than 20%

An FHA-insured mortgage allows for a lower credit score and higher debt-to-income ratio than a conventional mortgage. However, borrowers are still required to make a down payment, unlike VA or USDA loans. A down payment of less than 20% is typically required for FHA-insured mortgages. Option A, with more than 20%, would make this type of loan more similar to a conventional mortgage. Option B, with exactly 20%, is not the correct answer as a down payment of exactly 20% is usually associated with conventional loans. Option D, with no down payment required, is incorrect as stated earlier, FHA-insured mortgages do require a down payment. Therefore, the correct answer is C - less than 20%.

Get further explanation with Examzify DeepDiveBeta

No down payment required

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy