Which of the following is not a feature of an FHA loan?

An FHA loan, which stands for Federal Housing Administration loan, has several distinct features that make it favorable for many home buyers. One of the key characteristics is its assumability; this allows future buyers to take over the loan without needing to qualify for a new mortgage. Additionally, FHA loans are often budget loans, which can mean they include built-in provisions for borrowers to manage their monthly payments effectively.

However, an alienation clause is not a common feature of FHA loans. This specific clause typically allows a lender to demand full repayment of the loan if the property is sold or transferred to another party. Such clauses are more frequently associated with conventional loans rather than FHA loans. Therefore, identifying alienation clauses as not a feature of FHA loans aligns with the loan's structure, which encourages transferability and assumes that the financing can remain in place even if the ownership changes.

This understanding of loan characteristics can significantly aid in recognizing the differences between various loan types, crucial for anyone pursuing a career in real estate.