Free Pennsylvania Real Estate Practice Exam Practice Question
A buyer who completes a properly approved FHA loan purchase and whose property is destroyed is entitled to:
Correct Answer: A
Rationale: In the event of property destruction after securing an FHA loan, the buyer is entitled to full restoration of the property to its original condition. This ensures that the homeowner can recover their investment and maintain the property's value.
Option B is incorrect as it refers to insurance premiums for future loans, which is unrelated to the immediate concern of property restoration. Option C is misleading; discount points are typically not refunded in cases of property loss, as they are part of the loan terms. Option D discusses prepayment penalties, which are irrelevant to the situation of property destruction and restoration.
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