Alabama Real Estate Practice Exam

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Master your Alabama real estate exam with our comprehensive practice test. Tailored feedback, expert tips, and up-to-date questions to ensure your success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What does the FHA insure?

That the lender will not lose money
That the property is free from defects
The buyer's personal assets
The FHA-approved appraiser's fee

The correct answer is: That the lender will not lose money

The FHA insures the lender against losses in the event that the borrower defaults on their loan. This means that the FHA protects the lender's financial investment and ensures they do not lose money on the loan. Options B, C, and D are not correct because the FHA does not insure the property's condition or guarantee against the buyer's personal assets or the appraiser's fee.