Which of the following is NOT a feature of an FHA-insured loan?

An FHA-insured loan is designed to make homeownership more accessible and comes with several distinct features aimed at assisting borrowers, particularly first-time homebuyers. One significant aspect of FHA loans is the requirement for mortgage insurance premiums (MIP), which are generally required for the life of the loan. This insurance protects lenders in case of borrower default. Therefore, the assertion that there is "No MIP Insurance" in an FHA loan is incorrect.

On the other hand, adjustable interest rates, low down payments, and government backing are indeed features of FHA-insured loans. Many FHA loans offer adjustable-rate options, which means borrowers can benefit from lower initial rates that may change over time. Additionally, FHA loans are well-known for their low down payment requirements, often as low as 3.5% of the purchase price, making them an attractive option for those with limited savings. Lastly, the loans are backed by the federal government, providing lenders with the reassurance needed to offer loans to borrowers who might otherwise struggle to qualify through conventional means.