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Terms in this set (58)
the required down payment by the VA on a non-graduated payment guaranteed Loan is ______ % of the loaned amount.
FHA monthly Loan payments include all of the following EXCEPT:
(false) pre-paid Loan interest (true: Loan Principal, pre-paid property taxes, pre-paid property insurance)
the "escape clause" on FHA insured financing of a home purchase is the:
right of the buyer to withdraw if the appraisal is lower than the contract price
FHA Title I was created for which of the following reasons?
home improvement loans
the Mortgage Insurance Premium required for an FHA insured Loan would least likely benefit which of the following?
the interest on a conventional Loan is:
which of the following conventional Loan to value ratios would not need private mortgage insurance?
80% - 20%
the total amount of the VA guaranteed Loan entitlement is:
determined by congress
a 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 points
When a new FHA loan is acquired the Mortgage Insurance Premium:
Is an up-front and monthly premium
which of the following is a false regarding a VA Loan?
false: borrower cannot pay more than the certificate of reasonable value (true: property must be owner occupied, the loan is guaranteed, the loan is fully amortized)
if FHA is to insure a loan placed by a lender for the purchase of Real estate, each of the following must be met EXCEPT:
false: government funds must be available (true: mortgage insurance premium must be pre-paid, there is a set ratio of loan to property values, the building and borrower must meet the standards set by FHA)
if a buyer wants to purchase a property with an FHA insured Loan you would refer him to:
PMI will automatically be eliminated 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:
false: u.s. citizenship required ( true: required a larger down payment than VA, no prepayment penalty, borrower is subject to 1% loan origination fee)
the maximum VA Loan limit is:
determined by the lender
FHA and VA loans would cover:
single and multifamily units
conventional lenders receive their financial resources from:
an FA loan would not include which if the following?
not Due on sale clause (include: OR MORE clause, full amortization discount points)
private mortgage insurance covers:
portion of the loan over 80%
all of the following are advantages of a variable rate loan EXCEPT:
a lender would add a margin to an index to accomplish which of the following?
to keep current with the cost of new mortgages
When determining the front end ratio of a loan which of the following would be used?
monthly PITI divided by gross monthly income
monthly payments on an FHA Loan would most likely increase due to a :
rise in insurance
When a variable rate loan quotes a specific margin, which of the following statements is true?
the margin is set at time of loan
interest rates on FHA loans are determined by:
the main appeal of FHA loans to the borrower lies in:
minimum down payment
a variable rate loan is characterized by:
variable rate loans are normally used when:
conventional rates are high
When a fixed rate 30 years loan is partially pre-paid, this will have an effect of:
shortening the life of the loan
FHA will insure loans on all of the following EXCEPT:
20 unit apartment building
the borrower would sign a notice called "Importance of a Home Inspection" when buying under which of the following conditions?
the back end ratio of a loan would apply to:
total monthly obligations divided by gross monthly income
When a lender is allowed to determine if a borrower qualifies for FHA insurance the process is called a:
When a lender reviews a FICO score for a borrower it tells the lender if:
the borrower has sufficient credit
When a loan is made to a borrower with poor credit and low ratios, this type of loan would be called:
which of the following apply to a VA loan?
the VA funding fee would change based on:
Loan to value
When a veteran pays off a VA Loan in full, the veteran is entitled to:
reinstatement of full VA benefits
which 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 ?
how many days would a lender have to give the buyer a loan estimate in a Residential loan transaction?
3 days from loan application
the Real Estate Settlement Procedures Act applies to all of the following EXCEPT:
except Commercial loan ( but to FHA, VA, a loan sold to Fannie Mae)
the agency that regulates Regulation Z is:
why would the APR be higher than the interest rate on the note?
the lender charges discount points
a Lender is limited in the amount of reserves they may hold in a Residential real estate transaction. this is governed by:
truth in lending act regulation would apply if a Lia. has more than:
When a lender's advertising is considered bait and switch it would regulate by:
truth in lending
according to RESPA a lender must disclose which of the following?
if THE loan will be sold
according to RESPA, what is the maximum amount of Tax reserves a lender may impound?
the book "shopping for your home loan HUD settlement cost booklet " is. requirement of:
which law requires Disclosure of Affilitaed Businesses?
which law pertains to NO BAIT AND SWITCH advertising?
truth in lending
which law restricts kickbacks and referrals?
which of the following is not part of an FHA loan?
the effective rate of interest is best described as:
annual percentage rate
two rich tennis players have enough to buy a house using cash, but they want a loan. which loan is most likely?
a real estate salesperson sends a client to a lender. which of the following is true about the salesperson collecting a fee?
what type of loan is amortized , 30 years term, must be paid in full on the 10th anniversary?
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