The Federal Housing Administration _____ high loan-to-value ratio mortgages.
A) guarantees
B) insures
C) subsidizes
D) grants
E) allows

Question

Quizplus · Accepted Answer

The Federal Housing Administration insures high loan-to-value ratio mortgages, which means that the lender is protected in case the borrower defaults on the loan. This makes lenders more willing to offer these types of loans to borrowers who may not have a large down payment or established credit history.

The Federal Housing Administration _____ High Loan-To-Value Ratio Mortgages