Section 5 Unit 3 Practice Exam

The risks involved

Anna is selling her home and met a nice young couple she really wanted to sell to, but they couldn't get financing. If Anna agrees to carry part of the loan for the buyers, what does she need to understand?

Collateral

Georgette and Elise are buying a home together, and have taken out a loan with a private loan company. They'll pay a bit more interest, and larger fees, but they feel it's worth it to have the home they've always dreamed of. What else might the private loan company require?

$30,000

Ken and Sue are purchasing a home but are short on the down payment required by their lender. Sue's mother offered to give them cash to help with the down payment. How much can Sue's mother give under current tax laws?

National

Private loan companies may be found in many places. There are ______, regional, and local lenders, and even individual entrepreneurs who loan money.

Lien

Private loan companies may place a ______ on the property for which the loan is being taken.

$15,000

Under current tax law, what's the maximum tax-free gift an individual can give to another individual annually?

Individual entrepreneurs

Which of the following are potential private loan resources that may be willing to finance a home?

Their financial advisor

Who should sellers consult before agreeing to carry part of a loan for a buyer?