Which feature is NOT associated with an FHA loan?

An FHA loan is a popular mortgage option that is often associated with various features designed to help borrowers qualify easily and afford homes. One key characteristic of an FHA loan is that it is assumable, meaning that if the homeowner decides to sell the property, the buyer can take over the existing loan under the same terms. This is beneficial for buyers, especially in a rising interest rate market.

The budget loan aspect relates to how payments are structured; these loans typically include principle, interest, taxes, and insurance all rolled into one payment, which helps borrowers manage their monthly expenses effectively. An "or more clause" often refers to loan terms that allow for additional borrowing under certain conditions.

In contrast, an alienation clause is a provision that allows a lender to demand full repayment of a loan when the property is sold or transferred, which is not characteristic of FHA loans. FHA loans generally do not impose this restriction, making them more accessible to buyers without the burden of immediate repayment upon transfer or sale. Therefore, the alienation clause is the feature that stands out as not associated with FHA loans.