Texas Real Estate Finance - Chp 8 - Government Loans

The upfront fee for MIP is what percent of the loan amount...? 1 percent (%) 1.75 percent (%) 3 percent (%) 3.5 percent (%)

1.75 percent (%)

Anyone can assume a VA loan if the loan was obtained prior to...? 1988 1991 2001 2009

1988

A duplex house includes how many dwelling units...? 1 2 3 4

2

What is the minimum down payment required on an FHA insured loan for a residential investment property...? A20 percent (%) B3.5 percent (%) C10 percent (%) D5 percent (%)

20 percent (%)

Mortgage insurance for one to four family homes is covered by which HUD section...? 203b 223e 255 811

203b

FHA insured loans require a minimum down payment of...? 3.5 percent (%) 6.5 percent (%) 15 percent (%) 25 percent (%)

3.5 percent (%)

What is the maximum front-end debt ratio for an FHA insured loan...? 25 percent (%) 30 percent (%) 31 percent (%) 50 percent (%)

31 percent (%)

Lenders will generally loan up to ........a Veteran's available entitlement without a down payment? 2 times 3 times 4 times 5 times

4 times

The maximum debt-to-income ratio for a VA loan is...? A41 percent (%) B50 percent (%) C30 percent (%) D25 percent (%)

41 percent (%)

What is the maximum back-end debt ratio for an FHA insured loan...? 25 percent (%) 30 percent (%) 43 percent (%) 50 percent (%)

43 percent (%)

According to FHA guidelines, the seller can contribute up to ...........of the sales price towards the buyer's closing costs? A6 percent (%) B1.75 percent (%) C3 percent (%) D1 percent (%)

6 percent (%)

FHA insured loans require which of the following...? A careful review of the loan application A property inspection by a licensed engineer A 10% minimum earnest money deposit All of the above

A careful review of the loan application

FHA-Insured Loan -

A mortgage loan in which payments are insured by the Federal Housing Administration.

Mortgage Insurance Premium (MIP) -

A one-time premium paid at the closing pursuant to the purchase.

The down payment for an FHA insured loan may be paid using which of the following...? AAll of the above BCash from the borrower CA gift received by the borrower from a family member DA grant received by the borrower

AAll of the above BCash from the borrower CA gift received by the borrower from a family member DA grant received by the borrower

Underwriter -

An individual at a lending institution who determines creditworthiness in order to qualify an applicant for a loan.

Which of the following must be resolved by the borrower before an underwriter can process a loan...? Any outstanding judgments Any utility easements on the property Any existing mortgage liens from the seller All of the above

Any outstanding judgments

When applying for a VA loan, the Certificate of Reasonable Value essentially serves as the...? AAppraisal BCertificate of Eligibility CVA Entitlement Certificate DDown payment

Appraisal

The taking of a title to property by a grantee wherein the grantee assumes liability for payment of an existing note secured by a mortgage or deed of trust against the property is known as...? Assumption of mortgage Granting of mortgage Underwriting of mortgage Transfer of mortgage

Assumption of mortgage

What must be obtained in order to qualify for a VA loan...? Direct Endorsement Certificate Certificate of Eligibility Good Standing Credit Certificate VA Entitlement Certificate

Certificate of Eligibility

When applying for a VA loan, the maximum value of the property is established by which of the following...? Certificate of Reasonable Value Certificate of Eligibility VA Entitlement Certificate Direct Endorsement Certificate

Certificate of Reasonable Value

Which of the following is used as an appraisal for a VA loan...? Certificate of Eligibility VA Entitlement Certificate Certificate of Reasonable Value Direct Endorsement Certificate

Certificate of Reasonable Value

HUD is responsible for overseeing which of the following...? TREC FHA Federal Reserve U.S. Treasury

FHA

A mortgage loan in which payments are insured by the Federal Housing Administration is known as a/an...? Conventional loan VA loan FHA-insured loan Non-conforming loan

FHA-insured loan

Which of the following was created under the National Housing Act of 1934...? Department of Housing and Urban Development Fannie Mae Federal Housing Administration Freddie Mac

Federal Housing Administration

The Servicemen's Readjustment Act is also known as the...? G.I. Bill V.A. Bill FHA Bill Service Bill

G.I. Bill

VA loans are .............should the borrower default on their payments? Transferred Sold Guaranteed Subsidized

Guaranteed

The FHA is under the supervision of...? TREC HUD Federal Reserve U.S. Treasury

HUD

Which of the following is added to PITI...? Repairs and maintenance MIP Title insurance All of the above

MIP (mortgage insurance premium)

A one-time premium paid on FHA-insured loans at the closing, which is pursuant to the purchase is known as...? Private mortgage insurance Home warranty Mortgage insurance premium Title insurance

Mortgage insurance premium

In order to be eligible for a VA loan, the borrower must satisfy which of the following conditions...? Must make a down payment of at least 20% of the sales price Must have a credit score of at least 720 Must have served at least 90 consecutive days during wartime All of the above

Must have served at least 90 consecutive days during wartime

Which of the following parties is allowed to work with a lender's underwriter in an effort to get the borrower approved...? The mortgage broker The appraiser The seller No party is allowed to work directly with the underwriter

No party is allowed to work directly with the underwriter

The HUD section 203 insures FHA loans for which of the following...? One to four family homes Multi-family buildings Commercial buildings Condominiums

One to four family homes

FHA loans may be insured by which of the following HUD programs...? Section 203b Section 203k Section 251 All of the above

Section 203b Section 203k Section 251 All of the above

An FHA loan used for the purchase and rehabilitation of an owner-occupied house may be insured by which HUD program...? Section 203k Section 211 Section 223e Section 551

Section 203k

Insurance for adjustable rate mortgages are covered under what HUD program...? Section 203b Section 211 Section 251 Section 223e

Section 251

VA loans allow up to 4% in ................towards the buyer? ASeller concessions BClosing costs COrigination fees DAllowances

Seller concessions

VA loans were created under the...? National Housing Act of 1934 Community Reinvestment Act Equal Credit Opportunity Act Servicemen's Readjustment Act

Servicemen's Readjustment Act

Which of the following properties may be purchased using a VA loan...? Single family homes Condominiums Cooperatives All of the above

Single family homes Condominiums Cooperatives All of the above

What is the primary duty of the FHA...? Stimulate new jobs Stabilize the mortgage market Facilitate the financing of repairs, additions, and sales of existing homes All of the above

Stimulate new jobs Stabilize the mortgage market Facilitate the financing of repairs, additions, and sales of existing homes All of the above

The HUD section 203k program is NOT available for real estate investors...? T (True) F (False)

T (True)

A Uniform Residential Loan Application gets filled out by which of the following...? AThe borrower BThe broker CThe seller DAll of the above

The borrower

An underwriter will review which of the following...? The borrower's credit report The borrower's income statements The borrower's bank statements All of the above

The borrower's credit report The borrower's income statements The borrower's bank statements All of the above

Mortgage insurance premium primarily benefits which of the following...? The lender The borrower The seller All of the above

The lender

Assumption of Mortgage -

The taking of a title to property by a grantee wherein grantee assumes liability for payment of an existing note secured by a mortgage or deed of trust against the property, becoming a co-guarantor for the payment of a mortgage or deed of trust note.

What is the minimum down payment required on a VA loan...? 3.5 percent of the purchase price 5 percent of the purchase price 20 percent of the purchase price There is no minimum down payment required

There is no minimum down payment required

Home improvement loans are covered under what HUD title loan program..? Title 1 Title 3 Title 4 Title 5

Title 1

An individual at a lending institution who determines credit worthiness in order to qualify an applicant for a loan is known as a/an...? Mortgage broker Appraiser Mortgage banker Underwriter

Underwriter

When a borrower applies for a loan, they typically fill out which of the following...? Debt Disclosure Form Loan Estimate Application Uniform Residential Loan Application All of the above

Uniform Residential Loan Application

Underwriting -

The criteria with which a lender determines the credit worthiness in order to qualify them for the loan.