A-7 Self Study & National Arizona Real Estate Exam

When a variable rate loan quote a specific margin, which of the following statements is true?
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If the buyer wants to purchase a property with an FHA loan you would refer him to?Primary marketPMI will automatically be illuminated from a conventional loan under what circumstances?When the loan amount is reduced to 78%All of the following are true regarding an FHA insured loan except?US citizenship is requiredThe maximum VA loan limit is?Determined by the lenderFHA and VA loan would cover?Single and multi family unitsConventional lenders receive their financial resources from?Daily depositorsAn FHA loan would not include which of the following?Do you want sale clauseInterest rates on FHA loans are determined by?Market conditionsThe main appeal of FHA loans to the borrower lies in?Minimum down paymentA variable rate loan is characterized by?Amortized paymentsVariable rate loans are normally used when?Conventional rates are highFHA will ensure loans on all of the following except?20 unit apartment building'sThe borrower would sign a notice called importance of a home inspection when buying under which of the following conditions?FHA loanWhen a fixed rate 30 year loan is partially prepaid, this will have an effect of?Shortening the life of the loanWhen a lender reviews a FICO score for a borrower it tells the lender if?The borrower has sufficient creditWhen a loan is made to be a borrower with poor credit and low ratios, this type of loan would be called?Sub-PrimeWhich of the following apply to a VA loan?Funding feeThe VA funding fee would change based on?Loan-to-valueWhen he veteran pays off a VA loan in full, the better and is entitled to?Reinstatement of full VA benefitsWhen he vendors advertising is considered bait and switch it would be regulated by?Truth in lendingAccording to RESPA a lender must disclose which of the following?If the loan will be soldWhich of the following is not part of an FHA loan?Alienation clauseThe effective rate of interest is best described as?Annual percentage rateWhat type of lease with the renter pay all expenses?NetAccording to RESPA, what is the maximum out of tax reserves a lender may impound?Two monthsThe mortgage insurance premium required for an FHA loan would least likely benefit which of the following?BorrowerWhen determining the front and ratio of a loan which of the following would be used?Monthly PITI divided by gross monthlyA veteran wishes to place a refinance loan on his existing home with a VA loan. The lender will make the loan at 10% and 2 points. Which of the following statements are true?The veteran may take the loan and pay the pointsWhich law permits no bait and switch advertising?Truth in lendingThe book shopping for your whole loan HUD settlement cost booklet is required of?RESPAA limiter would add a margin to an index to accomplish which of the following?To keep current with the cost of new mortgagesAll of the following are advantages of a variable rate loan except?Annual adjustmentsThe total amount of the VA guaranteed loan entitlement is?Determined by CongressWhich of the following conventional loan to value ratios would not need private mortgage insurance?80% to 20%If FHA is to ensure a loan place by a lender for the purchase of real estate, each of the following must be met except?Government funds must be availableWhich law restricts kickbacks and referrals?RESPAThe real estate settlement procedures act applies to all the following except?Commercial loansHow many days would a lender have to give the buyer a loan estimate in a residential loan transaction?3 days from the loan applicationTruth in lending act regulations would apply if a loan has more than one?4 paymentsA lender is limited in the amount of reserves they may hold in a residential real estate transaction. This is governed by?RESPAThe agency that regulates Reg Z is?CFPBWhich of the following requires lenders to inform borrowers, when buying a home, secured by a mortgage or trust deed, of all finance charges, fees and interest at the time of signing the loan documents?Regulation ZWhich of the following is false regarding a VA loan?The borrower cannot pay more than the certificate of reasonable valueWhen a lender is allowed to determine if a borrower qualifies for FHA insurance the process is called?Direct endorsementFHA monthly loan payments include all of the following except?Prepaid loan interestWhen a new FHA loan is acquired the mortgage insurance premium?Is an upfront and monthly premium