real estate finance
Millie and Jerry are purchasing a home using their VA loan benefit. The sales price is $320,000, with 100% financing. Assuming that Jerry has a typical level of entitlement, how much of their loan does the VA guarantee?
$80,000 The VA guarantees up to a quarter of the total loan amount, up to $104,250, so Millie and Jerry's loan is guaranteed for one-fourth of $320,000, which is $80,000.
your client, Ray, wants to purchase a home listed for 200,000. The home is in a revitalization area, and Ray can purchase it under the Good Neighbor Program. How much will he have to pay for the home?
200,000, less 50%, plus $100
what must a qualified mortgage's loan term limit be?
30 years or less
subprime borrowers credit score
580-669
median credit score
670-739
for conventional loans in which the loan to value ratio is in excess of a certain percentage, lenders generally require PMI. what's this percentage?
80%
under which section of the loan estimate will you find any credits provided by the seller?
Calculated Cash to Close
your clients, the nguyens, have signed a contract for deed to purchase a property. what rights do the Nguyens receive?
Equitable title and possession of the property
___ creates a secondary market for agricultural loans by buying the loans, pooling them, and selling them as securities.
Farmer Mac
from a secondary market player, regional state bank received an advance in exchange for collateral in the form of mortgages. which entity likely issued this advance?
Federal Home Loan Bank
which institution guarantees mortgage backed securities with the full faith and credit of the united states?
Ginnie Mae
how and when does a contractor performing work associated with a 203(k) loan receive funds from the lender?
Half is received up front and the other half after the work is completed and approved
which of the following specifies a requirement of pre loan counseling for consumers?
Homeowner and Equity Protection Act
in a mortgage, the property is used as collateral for the loan. whats the term for the process of pledging something as collateral
Hypothecation
a lender benefits from selling loans to fannie mae by
Increasing capital to offer loans with larger sale prices
what does it mean if the Fed increases reserve requirements?
Member banks must keep more assets on deposit at the reserve bank.
the ___ is where the borrower finds the details about how, when and by how much the interest rate will change in an adjustable rate mortgage (ARM)
Mortgage note
conforming loan limits vary based on two factors: location and what else?
Number of units being purchased with the property
when does PMI end?
Once the loan-to-value ratio reaches 78% of the original value.
which of following best describes foreclosure by entry and possession
Petition to enter, repossession, notice of eviction
what did the Troubled Asset Relief Program allow the U.S Treasury to do in response to the 2007 financial crisis?
Spend billions
___ sets conforming loan limits for mortgages
The Federal Home Financing Agency
which agency regulates FHLBanks?
The Federal Housing Finance Authority
which of the following is a true statement about borrower qualification standards for a VA guaranteed loan?
The applicant must have a certificate of eligibility.
the upfront MIP on an FHA loan is calculated on
The base loan amount
how is a loan assumption documented?
The buyer and seller both sign an assumption agreement.
what is the most likely effect when the Fed buys securities on the open market?
The economy may grow due to an increased money supply.
what does it mean when a life insurance company uses participation financing
The life insurance company participates by taking partial ownership of the project in exchange for funding the loan.
what is a potential cause for a decrease in local economy driven by the fed?
The reserve percentage is increased by the Fed.
to be eligible for a ___ an applicant must have participated in farm and ranch management for at least 3 years
USDA loan through the Farm Service Agency
which veteran loan program in Texas offers qualified veterans help with the purchase of their primary home?
Veterans Housing Assistance Program
in which of the following situations is a catastrophic health insurance plan the most reasonable choice?
You have excellent health and get regular check-ups
suppose you live and work in the north central US. which of the following factors would have a direct impact on property at the local level?
a change in zoning ordinances
what type of property is Aileen appraising if she's using the income approach
a short term lake rental
regional state bank is a member bank of the federal home loan bank. in exchange for mortgage collateral, regional state bank received a loan from FHLB so it can make additional loans to consumers. what is the loan called that regional state bank received?
an advance
which of the following individuals would qualify to purchase a home under the Good Neighbor Program?
an emergency medical technician
which of the following items directly influences real estate supply?
construction
a lender was not able to recover all of the losses incurred during the foreclosure process. what could it pursue to recoup these losses
deficiency judgment
the rate at which a bank can obtain a loan from its federal reserve bank when using commercial paper as collateral is called the ___ rate
discount
this could happen if a factory were put in next door that changed and impacted property value
external obsolescence
which of the following could be different from the amount on the initial loan estimate and can impact the monthly payment
interest rate
sharon needs to know which mutual funds to make the most sense for her financial situation. which professional could offer the most expertise in this area?
investment advisor
someone with great carpentry skills pairs up with someone with working capital to purchase an investment property. this is known as
joint venture
zara is reviewing the "calculating Cash to Close" table on page three of the disclosure to see what has changed from her loan estimate. she found this extremely helpful and easy to understand because the table explicitly lists
loan estimate and final amount side-by-side
business expenses, personal expenses, and financial goals can all be tracked easily when you
manage cash flow through appropriate accounts
in which type of partnership does each mortgage receive a share of the mortgage payment
partnership among mortgagees
which mortgage- related document is the equivalent of the deed of reconveyance used with a deed of trust?
satisfaction of mortgage
the FHA___ program allows a borrower to refinance an FHA loan without verifying income or assets
streamline refinance
what is the purpose behind Appraiser Independence Requirement
to protect appraisers ability to assess and accurate value for a property by avoiding outside pressure or influence
a lapse in property insurance coverage can result in borrow default because it leaves the lender___ should something happen to damage the property
vulnerable
mutual savings banks were created to serve___ during the mid 19th century
workers
