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Champion Real Estate – Financing Exam Questions and Answers $12.49   Add to cart

Exam (elaborations)

Champion Real Estate – Financing Exam Questions and Answers

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  • 2024/2025
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  • 2024/2025

Champion Real Estate – Financing Exam Questions and Answers Hard Money Loan - Answer-Real estate loans made by private lenders funded in cash, great for "flippers" Blanket Mortgage - Answer-mortgage covering more than one parcel of real estate Package Mortgage - Answer-Mortgage covering both...

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  • October 15, 2024
  • 22
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • 2024/2025
  • 2024/2025
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Emillect
EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.




Champion Real Estate – Financing Exam
Questions and Answers

Hard Money Loan - Answer✔✔-Real estate loans made by private lenders funded in cash, great

for "flippers"


Blanket Mortgage - Answer✔✔-mortgage covering more than one parcel of real estate


Package Mortgage - Answer✔✔-Mortgage covering both real and personal property


Budget Mortgage - Answer✔✔-A mortgage with payment that covers principal and interest,

plus taxes, fire insurance, lease rent, etc.


Wraparound Mortgage - Answer✔✔-Method of financing which preserves the low, existing

interest rate on the original note.


Open-End Mortgage - Answer✔✔-mortgage that provides possibility for further borrowing on

the same note and mortgage


Closed-End Mortgage (HELOC) - Answer✔✔-mortgage that has a specific dollar amount and

does not allow for additional borrowing on the same note and mortgage - traditional


Seller Financing - Answer✔✔-a note accepted by a seller instead of cash


Types of Refinancing: - Answer✔✔-Regular (Rate/Term) or Cash-Out



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,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.



PMI - Answer✔✔-Private Mortgage Insurance


Private Mortgage Insurance (PMI) - Answer✔✔-a special policy that protects the lender in case

the buyer cannot make payments or cannot make them on time


LTV - Answer✔✔-Loan-to-Value Ratio


Subprime Loans - Answer✔✔-loans granted to borrowers with flawed credit histories - no

longer used


predatory lending - Answer✔✔-Unscrupulous lender takes advantage of a consumer's lack of

knowledge regarding lending practices.


Types of Mortgage Fraud - Answer✔✔-Fraud for Housing, Fraud for profit, Criminal Purposes

(money/drug laundering)


churning - Answer✔✔-excessive buying and selling of securities to generate commissions


Chunking - Answer✔✔-fraudsters promise to show investors how to get rich fast by buying

investment properties.


Equity Theft - Answer✔✔-fraudsters forge a deed transfer or a satisfaction lien, and then obtain

new liens on the property.


foreclosure rescue scams - Answer✔✔-a homeowner is deceived into signing over title to the

property with the belief that he or she will be able to remain in the house as a renter and

eventually buy it back



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, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.



Property Flipping - Answer✔✔-the process of buying properties, renovating them to some

degree, and reselling them with the goal of making an inflated profit due to an inflated appraisal

and mortgage loan


Straw Buyer - Answer✔✔-someone who agrees to use their personal information to buy the

home to conceal the actual owner


FHA, VA, USDA - Answer✔✔-Types of government loans


Federal Housing - Answer✔✔-established in 1943, insurance program that protects the lender

from default by the borrower.


203b - Answer✔✔-Most commonly used FHA loan program 1 to 4 family residence


203(k) - Answer✔✔-FHA Renovation Loan


96.5% - Answer✔✔-The maximum loan-to-value ratio on and FHA loan.


up-front mortgage insurance premium (UFMIP) - Answer✔✔-A one-time mortgage insurance

premium on FHA mortgage loans that is paid at closing.


UFMIP CALCULATION - Answer✔✔-**** Sales Price/Value * LTV = Base Loan Amount


****Base Loan Amount * 2.25% = (UFMIP)


Every FHA Loan has - Answer✔✔-Every one has mortgage Insurance


and an escrow account


HECM

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