The FHA ____ high loan-to-value ratio mortgages.
A)guarantees
B)insures
C)subsidizes
D)grants
E)allows

Question

Quizplus · Accepted Answer

The FHA (Federal Housing Administration) insures high loan-to-value ratio mortgages, which means it provides a guarantee to lenders against losses if the borrower defaults on the loan. This reduces the risk for lenders and encourages them to offer more favorable terms to borrowers with lower down payments.

The FHA ____ High Loan-To-Value Ratio Mortgages