Which of the following is NOT a benefit of FHA-insured loans?

FHA-insured loans are designed to help a wider range of borrowers qualify for home financing, specifically benefiting those with lower credit scores and limited savings for a down payment. One of the key features of FHA loans is the lower down payment requirement, which can be as low as 3.5% of the purchase price. This makes homeownership more accessible for individuals who might not have a significant amount of savings.

Moreover, FHA loans allow for borrowers with lower credit scores to qualify, which is a significant advantage over conventional loans that often have stricter credit score requirements. Additionally, certain areas may have higher loan limits set by the FHA, enabling borrowers to obtain necessary funds for purchasing homes in higher-cost markets.

However, it is important to note that FHA loans do incur mortgage insurance premiums (MIP), which are required to protect lenders from defaults. Therefore, the assertion that there are "no insurance fees required" is indeed correct, as it does not align with how FHA loans operate. Ultimately, while the FHA offers various benefits, waiving insurance fees is not among them, making it the option that is not a benefit of FHA-insured loans.