Question 65

Which of the following would be acceptable to the FHA?

The FHA would accept certain adjustments or actions in the context of a lower appraisal. Specifically, option C addresses acceptable practices under these circumstances.

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 does not directly address the question regarding what would be acceptable to the FHA. While it mentions the down payment and appraisal situation, it lacks relevance to the practices or adjustments that the FHA would approve in response to an appraisal discrepancy.

B) 000 less than the agreed amount

Similar to option A, this statement provides a numerical context but fails to identify any actions or adjustments that would be acceptable to the FHA. It does not offer guidance on how to handle the appraisal situation, thus making it irrelevant to the question.

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

This option directly poses the question that is being asked. It indicates that there are specific actions or responses that can be deemed acceptable by the FHA when dealing with appraisal issues, making it the most relevant choice in the context of the question.

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

This option suggests an action that could be taken in response to a lower appraisal, but it is not a viable or acceptable solution as per FHA guidelines. The FHA would typically still insure loans even with lower appraisals, as long as other criteria are met.

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

While this option implies a strategy to potentially elevate the appraisal value, it does not align with FHA policies regarding acceptable practices. The FHA does not endorse artificially inflating appraisal values, making this option incorrect.

F) paying the $15

This option is vague and does not provide a clear or relevant course of action regarding FHA guidelines. Simply paying a difference does not address the broader context of acceptable practices outlined by the FHA.

G) 000 difference between contract price and appraised value

This option reiterates a numerical difference but does not specify actions or solutions that would meet FHA standards. It lacks the context needed to be considered a correct response to the question.

Conclusion

Option C is definitively correct as it directly addresses the question about what actions or circumstances would be acceptable to the FHA concerning appraisal issues. All other options either fail to provide relevant or acceptable solutions or do not answer the question posed. The FHA has specific criteria for handling lower appraisals, and understanding those is crucial for compliance and successful loan processing.