Exam (elaborations)
REAL ESTATE FINANCE I-CHAMPIONS
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REAL ESTATE FINANCE I-CHAMPIONS
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REAL ESTATE FINANCE I-CHAMPIONSThe minimum downpayment on a VA loan is:
(a) 2% of the sales price
(b) 0% of the sales price
(c) 3.75% of the sales price
(d) 1% of the sales price - answer- B
_________ is the process of creating a new mortgage loan.
(a) Origination
(b) Funding
(c) Underwriting
(d) Servicing
* - answer- A
Escrow of taxes and insurance is required for FHA loans:
(a) With a LTV of 90% or greater
(b) Made to borrowers with a credit score under 600
(c) Always - all FHA loans require escrow of taxes and insurance
(d) Unless the borrower agrees to pay an escrow waiver fee - answer- C
The fixed rate charged on an adjustable rate mortgage until the first adjustment date is
known as the ___________.
(a) Prime rate
(b) Index rate
(c) Initial rate
(d) Cap rate - answer- C
The lender may also be referred to as the ___________ in some deed of trust forms.
, (a) Mortgagor
(b) Grantor
(c) Mortgagee
(d) Trustee - answer- C
Which loan is most likely to contain a release clause? - answer- A blanket loan
A VA loan is allowed to be given to whom? - answer- Any veteran and their spouse
A young couple with a good credit score want to buy a house in a high risk
neighborhood and the lender doesn't want to approve it? This is a case of? - answer-
Red lining for community
The _____ mortgage market is made up of the businesses that lend to borrowers for the
pur- chase of real estate. - answer- Primary
Under a(n) _____, when the final payment is made to the seller, title transfers to the
buyer. - answer-
Which can FHA borrower not use gift funds from a(n) _____ as funds for a
downpayment.
Parent
Friend
Seller
Cash-out refinance - answer- Seller
A claim, lien, charge, or liability attached to and binding real property is a(n)
__________.
(a) Clause
(b) Easement
(c) Encumbrance
(d) Conveyance - answer- C
FHA requires a down payment of:
(a) 0%
(b) 3.50%
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