RELE1219 QUIZ 8

A couple will need to have 3.5 percent of the sales price to qualify for their FHA loan. They may NOT obtain the funds from which of the following sources?

Unsecured loan

New provisions provided under the Housing and Economic Recovery Act (HERA) for the FHA Home Equity Conversion Mortgage (HECM) include all of the following EXCEPT

all types of properties are allowed, except cooperatives.

The certificate of reasonable value (CRV) came in at $190,000 on a house that had been purchased for $200,000. The buyer has the option to

cancel the transaction.

Rules and regulations for FHA appraisers require appraisers to do all of the following EXCEPT

guarantee that the property is free of defects.

The housing ratio of 31% for an FHA loan can be raised due to certain compensating factors such as any of the following EXCEPT

higher education degree.

Key features of the VA adjustable-rate mortgage include all of the following EXCEPT

initial interest rate is used for underwriting.

The VA funding fee may be added to the loan amount but must NOT exceed the

maximum loan based on the loan guarantee.

On an FHA loan, the seller can contribute up to 6% of allowable closing costs such as any of the following EXCEPT

moving expenses

The Federal Housing Administration (FHA) was organized in 1934 to do all of the following EXCEPT

provide direct funding for mortgage loans

The FHA Good Neighbor Nep $ m has been expanded to include all of the following EXCEPT

senior citizens.

A veteran is willing to allow his VA loan to be assumed but wishes to regain his ability to obtain another VA loan. He must ask the borrower to provide him with a

substitution of entitlement.

An FHA section 203(k) loan would provide a loan for

the purchase and rehabilitation of a property.

All of the following statements regarding FHA mortgage insurance are true EXCEPT

there is no up-front mortgage insurance premium for condominiums

VA loans do not require mortgage insurance but there is a funding fee charged to cover expenses in case of default. The funding fee is higher for all of the following EXCEPT

veteran receiving compensation for service-connected disability.

The maximum amount that is guaranteed to a lender on a Department of Veterans Affairs (VA) loan is

25 percent of the current conforming loan limit.