Question 4

Which of the following would be acceptable to the FHA?

The FHA would consider certain conditions acceptable when evaluating a loan, particularly in relation to appraisal values and the financing terms presented by the couple.

A) which was surprising because they were only putting 3.5% down with an FHA insured loan. If the appraisal comes in $15

This option discusses the down payment and the surprise of the offer acceptance but does not address FHA guidelines or what would be acceptable in relation to an appraisal. Therefore, it is not relevant to the question regarding acceptability to the FHA.

B) 000 less than the agreed amount

This option appears to reference a numerical value related to the appraisal but lacks context or relevance to FHA standards. It does not provide a clear answer regarding what the FHA would accept in terms of appraisal adjustments, making it incorrect.

C) which of the following would be acceptable to the FHA?

This option directly addresses the question about FHA acceptability. It implies a consideration of various factors that the FHA uses to determine whether a loan qualifies, particularly in terms of appraisal and financing conditions, thus making it the correct choice.

D) making sure this loan is not insured because of the lower appraisal

This option incorrectly suggests that the FHA would allow a loan to be uninsurable due to a low appraisal. The FHA has specific guidelines that would not support making a loan uninsurable based solely on appraisal values, rendering this choice incorrect.

E) giving the improvements more value and adding money to the appraisal

While this option suggests a potential strategy for improving appraisal outcomes, it does not directly relate to the FHA's acceptability criteria. The FHA evaluates properties based on set standards rather than subjective enhancements, making this choice inaccurate.

F) paying the $15

This option is vague and does not provide a comprehensive understanding of FHA acceptance criteria. It fails to address any relevant FHA guidelines regarding appraisal differences or loan conditions, thus making it incorrect.

G) 000 difference between contract price and appraised value

This option references a numerical difference but lacks clarity and context regarding FHA policies. Without additional information, it does not effectively answer the question about FHA acceptability, rendering it incorrect.

Conclusion

Option C is the only choice that correctly addresses the question of FHA acceptability in the context of appraisal considerations. All other options either provide irrelevant information, lack the necessary context, or misrepresent FHA guidelines. Understanding the FHA's criteria is vital for determining the validity of loan offers, especially in competitive markets.