FHA-VA mortgages differ from conventional mortgages in that
A) the mortgaged land and building are collateral for conventional mortgages but not for FHA-VA mortgages.
B) FHA-VA mortgages are insured by the federal government, while conventional mortgages are not.
C) FHA-VA mortgages involve real estate, while conventional mortgages may or may not involve real estate.
D) conventional mortgages run for 25-30 years, but FHA-VA are considerably shorter in duration.

Question

Quizplus · Accepted Answer

FHA-VA mortgages are insured by the federal government, while conventional mortgages are not. This is the key difference between the two types of mortgages. The government insures FHA-VA mortgages to make them more accessible and affordable to a wider range of borrowers, particularly those with lower credit scores or less money for a down payment. In contrast, conventional mortgages are backed by private lenders and do not have government insurance.

FHA-VA Mortgages Differ from Conventional Mortgages in That