VA Loan Guidelines and Mortgage Financing, Exams of Real Estate Management

Download VA Loan Guidelines and Mortgage Financing and more Exams Real Estate Management in PDF only on Docsity! The minimum downpayment on a VA loan is: 2% of the sales price 0% of the sales price 3.75% of the sales price 1% of the sales price Answer - B * Answer - A A veteran can have more than one VA loan: If the prior VA loan was paid in full and the property disposed of The prior VA loan was assumed by an eligible veteran who substituted their entitlement A or B Under no circumstances - a VA loan is a "once in a lifetime" benefit * Answer - C Real Estate Finance I- CHAMPIONS Exam Questions and Answers ( ( ( ( ( ( ( is the process of creating a new mortgage loan. a) Origination b) Funding c) are not-for-profit organizations that exist to serve their members. a) Mortgage companies b) Credit unions A qualifying ratio that compares the borrower's proposed house payment to their gross monthly income is the . Back ratio Appraisal ratio Front ratio Loan to value ratio Answer - C Periodic payment amounts such as principal & interest, estimated escrow, estimated monthly payment, and must be disclosed in the Projected Payments section of the Loan Estimate form. Mortgage Insurance Homeowner's insurance Property value Estimated inspection cost Answer - A In the Closing Disclosure, prepaids include homeowner's and mortgage insurance premiums, prepaid interest, property taxes, and a maximum of additional items. (a) 13 (b) 3 (c) 7 (d) 9 Answer - B When calculating the monthly payment, the lender will add an amount equal to: (a) Twelve months’ insurance and six months taxes ( ( ( ( relates to Federal Government spending. a) Monetary policy b) Legislative policy c) Reserve (d) One that cannot be financed Answer - B Because it is a gift, the lender and/or the agent can provide gift funds to the borrower to be used as a down payment on an FHA loan. True False Answer - B The two major purchasers of mortgages in the secondary market are: Freddie Mac and Ginnie Mae Fannie Mae and Freddie Mac Ginne Mae and Fannie Mae FHFA and HECM Answer - B If a borrower is in default, the mortgage servicer may start the process. Forestalling Closing Casting Foreclosure Answer - D A collateral-dependent loan is also known as a . Title loan Cash advance Hard money loan Payment option loan Answer - C Lenders bear less risk in making an FHA loan because the FHA: Borrowers generally have higher than average income and credit Requires a substantial down payment that minimizes risk Is default insurance that will pay a claim to a lender in the event of default ( ( ( b) Union Pacific c) Transtar While some expenses may be paid in the form of a seller contribution or other means, the borrower actually must have the funds on hand for the: Downpayment Appraisal fee Points Brokerage fee Answer - A FHA loans are available for: Single family homes Multifamily properties Manufactured homes All of the above Answer - D An ARM that offers a fixed-rate period during the first years of the loan usually has an initial adjustment cap that is higher than the per adjustment cap. True False Answer - A deposits at depository institutions. (a) M1 (b) M2 (c) M3 (d) MI-5 Answer - A is defined as the sum of currency held by the public and transaction The is where borrowers and mortgage lenders come together to create and negotiate the terms of a mortgage transaction. Money market Credit market Primary market (d) Requires that the borrower have a higher credit score than other programs Answer - C (c) Assists the borrower in comparing different loan offers from the same lender enders (d) Is not used until the borrower has committed to a particular lender Answer - B A home was built 30 years ago, but is much like a home that is 10 years old, based upon its condition. In the appraisal, ten years is the home's . Useful life Effective age Chronological age (d) Depreciated age Answer - B The process of making a lending decision is known as . Processing Applying Underwriting (d) Credit Scoring Answer - C In the Loan Estimate, the Comparisons Table: Ownership of real estate in Texas is established by certificates of title recorded in the Torrens System. (a) True (b) False Answer - B The money that mortgage companies use to make loans comes from . The sale of bonds The Federal Reserve Tax dollars (d) Real estate Answer - A (a)Displays offers from multiple lenders (b)Provides information to the borrower used to compare loan offers from different l (d) Secondary market Answer - C The maximum loan to value ratio on an FHA loan is 90%. True False Answer - B A return that represents the money earned on an investment is called . A Yield A Stop A Buffer Liquidity Answer - A The State of Texas plays a role in affordable housing through: TALCB TREC TDHCA TDEC Answer - C If the marketing time in an appraisal is over six months, It is not an issue because time is not a factor in valuation It indicates a healthy market that is boosting property values It suggests that the area is fully developed It suggests that the market is slow enough to be a drag on property values Answer - D If a home was built 30 years ago, thirty years is the home's . Useful life Effective age Chronological age ( ( ( b) $145,044 c) $161,071 An appropriate loan for a property in need of significant rehabilitation would be a(n): Construction loan Construction to permanent loan Cash back to buyer loan (d) Permanent loan Answer - B Each consumer has three different credit scores from the three major credit reporting agencies because: Some consumers use only one or two of the reporting agencies Some consumers have locked their credit file Not all creditors report to all of the agencies (d) Some of the credit reporting agencies are slow to update their records Answer - C At closing, none of the charges listed on the Loan Estimate can change. (a) True (b) False Answer - B Periodic payment amounts such as principal & interest, estimated escrow, estimated monthly payment, and must be disclosed in the Projected Payments section of the Loan Estimate form. Mortgage insurance Homeowner's insurance Property value (d) Estimate inspection cost Answer - A The most common occurrences that can result in foreclosure include: Payment delinquency Failure to maintain the mortgaged property Failure to repay property taxes (d) All of the choices are correct Answer - D (d) Depreciated age Answer - C (a) Prime rate s known as the . For the borrower planning to remain in his/her home in the long term, or the borrower who is adverse to risk, the best choice in a mortgage would probably be: A reverse mortgage An adjustable rate mortgage An interest-only loan (d) A fixed-rate mortgage Answer - D (d) Settlement agent's Answer - D (d) Freddie Mac Answer - D The Closing Information section of the Closing Disclosure form includes the date i the value, and the name and file number. (a)Listing agent's (b)Broker's (c)Buyer's was established in 1970 for the purpose of purchasing mortgages in the s ( ( ( The fixed rate charged on an adjustable rate mortgage until the first adjustment date i A strict foreclosure is one in which the files suit on the homeowner in default. Seller Lender State government (d) Federal government Answer - B ssue , the disbursement and closing dates, the address or location of the property, econdary market. a) Fannie Mae b) Farmer Mac