Pre-Licensing - Real Estate - Section 22 - Unit 3, Unit 4, Unit 5
Bankruptcy
Alternatives to foreclosure include deed in lieu of foreclosure, short sale, or ______.
False
Borrowers may cancel MIP when they reach an LTVR of more than 80%. (true or false)
True
Borrowers will pay an upfront premium when they close on the loan and annual premiums for the life of the loan. (true or false)
Her down payment of $50,000 isn't at least 20% of the purchase price.
Celia was obtaining a conventional loan, and she put $50,000 down as a down payment. Why might her lender also require her to obtain private mortgage insurance?
80%
Conventional loans require PMI if the loan-to-value ratio is over ________.
Yes
Helping to Own (H20) has down payment assistance? (yes or no)
Half is received up front and the other half after the work is completed and approved
How and when does a contractor performing work associated with a 203(k) loan receive funds from the lender?
True
In Indiana the lender must seek the court's permission to foreclose on a property that's fallen into default. (true or false)
True
In Indiana the loan doesn't need to have property attached to it. (true or false)
True
MIP is required of all FHA borrowers. (true or false)
False
Mortgage notes in Indiana include a power of sale clause. (true or false)
Fall within the FHA mortgage limit for the area where the property is located.
On an FHA 203(k) loan, the combined cost of home value and rehab must ______.
Short Sale
Ray is in a bit of a predicament. He owes more on his mortgage than his property is worth, but can no longer afford the payments. He receives permission from his lender to sell the property for less than what he owes. What is this an example of?
True
The Farm Service Agency administers rural development loan programs. (true or false)
U.S. Department of Housing and Urban Development
The Federal Housing Administration is part of the ______.
$36,000
The VA loan program offers a basic entitlement amount of ______.
One Fourth
The VA will pay ________ of the loan to the lender upon default up to the amount of $104,250.
remaining balance, down payment
The second mortgage amount in a piggyback loan is the difference between the ___________ __________ owed and the amount of the _______ ____________.
PMI
Vince Parker is purchasing a home for $150,000. He puts 10% down on a conventional loan. Will he be required to obtain PMI or MIP?
The Mortgage
While the associated real estate loan is active, what document places a lien on a home in Indiana?
The Borrower
Who or what entity holds title to a property in Indiana while the loan is still active?
To roll the cost of rehabilitating the purchased home into the mortgage
Why might a homebuyer use an FHA 203(k) loan instead of the standard 203(b) loan?
Deed
ne alternative to foreclosure is a voluntary conveyance of ______.
Participate in the direct endorsement program
Lenders who ______ can underwrite and approve FHA loans without requiring the FHA to review each borrower's qualifications.
Yes, Sissy can apply to have her entitlement restored and can buy a second house using a VA loan.
Sissy is a veteran who used her full entitlement to purchase a home. The loan has since been paid off, and Sissy still owns the home. Now, she'd like to buy a second home using another VA loan. Is Sissy allowed to do this?
Piggyback, 80%
The first mortgage in a _____________ loan must be ____ or less of the property's value.
The veteran has a 10% or higher VA disability
The funding fee on a VA loan is waived when ______.
3.5 %
The minimum down payment for an FHA 203(b) loan is ______.
No down payment, no mortgage insurance, and no prepayment penalty
What are the main benefits to veterans of the VA-guaranteed loan program?
In the event of default, a portion of the loan will be repaid to the lender.
What does the U.S. Department of Veterans Affairs assure when it guarantees a loan?
A short sale can negatively impact the seller's credit, and the lender may seek a deficiency judgment for the amount not repaid.
What is a potential ramification to the seller if a short sale is completed?
Certificate of Eligibility (COE)
What tells the lender how much entitlement the veteran has available under the VA loan program?
To protect the lender in case of borrower default when the borrower has put down less than 20%
What's the purpose of PMI?
Next Home
Which Indiana loan program should Martha consider if the sales price of the home she wants to buy is larger than the program acquisition cost limits?
Affordable Home (AH)
Which Indiana program should Ryan recommend to his buyer if the buyer wants to focus on getting a below-market interest rate?
Farming Service Agency (FSA)
Which entity services rural development loans?