Which statement about FHA insured loans is false?

The assertion that FHA loans are intended exclusively for low-income first-time homebuyers is inaccurate. While FHA loans do cater to first-time homebuyers and are designed to assist individuals with lower income levels, they are not exclusively limited to this demographic. Individuals looking to purchase homes may benefit from FHA loans regardless of whether they are first-time buyers or not.

The other statements about FHA loans are accurate. These loans are known for their less stringent qualifying standards, which allow borrowers with lower credit scores and higher debt-to-income ratios to qualify more easily. Additionally, they do allow for low down payments, often as low as 3.5% of the purchase price, making homeownership more accessible. The flexibility in loan structure includes adjustable-rate mortgages, offering borrowers options to choose between fixed and adjustable interest rates.