Texas Real Estate Finance
The upfront fee for MIP is what percent of the loan amount...?
1.75%
A duplex house includes how many dwelling units...?
2
Which of the following are included as the buyer's charge on a closing settlement statement...?
Appraisal fees Credit reports Title insurance
The ability to deduct expenses on improvements made to income producing property is known as...?
Depreciation
Which of the following is an example of a credit bureau...?
Equifax Experian TransUnion
An appraisal determines an estimate of...?
Fair market value
The FHA is under the supervision of...?
HUD
Monies that are owed are considered...?
Liabilities
Which of the following is added to PITI...?
MIP
A forbearance on a note is known as a...?
Moratorium
A judicial foreclosure is required when a ............is used?
Mortgage
Assets minus liabilities equals an individual's...?
Net worth
Which of the following parties is allowed to work with a lender's underwriter in an effort to get the borrower approved...?
No party is allowed to work directly with the underwriter
An attorney may issue which of the following...?
Opinion of title
Which of the following is an example of a liability...?
Outstanding loan balance
At closing, property taxes are ............between the buyer and seller?
Prorated
VA loans were created under the...?
Servicemen's Readjustment Act
Which of the following properties may be purchased using a VA loan...?
Single family homes Condominiums Cooperatives
Which of the following liens takes the highest priority over other liens...?
Tax lien
Anyone can assume a VA loan if the loan was obtained prior to...?
1988
FHA insured loans require a minimum down payment of...?
3.5%
FHA insured loans require which of the following...?
A careful review of the loan application
When an owner leaves their property without any just cause, the owner is said to have ...........the property?
Abandoned
A summary or digest of all transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title, showing continuity of ownership, together with any other elements of record which may impair title, is known as...?
Abstract of title
Which of the following must be resolved by the borrower before an underwriter can process a loan...?
Any outstanding judgments
An opinion of value is known as a/an...?
Appraisal
This is a written statement, independently and impartially prepared by a qualified appraiser setting forth an opinion in a transaction, as to the market value of an adequately described property, as of a specific date...?
Appraisal
Something that has value is known as a/an...?
Asset
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
Which of the following are included as the seller's charge on a closing settlement statement...?
Broker commissions Transfer taxes Recording fees
This is the rate of interest which is considered a reasonable return on the investment, and used in the process of determining value based upon net income...?
Capitalization rate
Under the Uniform Residential Loan Application, which of the following is considered an asset for the borrower...?
Cash deposits
The down payment for an FHA insured loan may be paid using which of the following...?
Cash from the borrower A gift received by the borrower from a family member A grant received by the borrower
What must be obtained in order to qualify for a VA loan...?
Certificate of Eligibility
Which of the following is used as an appraisal for a VA loan...?
Certificate of Reasonable Value
Title that is encumbered or burdened with defects is known as...?
Clouded title
When qualifying a borrower, the lender will do which of the following...?
Determine the ability of the borrower to repay Estimate the value of the property being used as collateral Research and analyze the marketability of title
The 'Site' section of the Uniform Residential Appraisal Report includes which of the following information...?
Dimensions of the subject property
HUD is responsible for overseeing which of the following...?
FHA
A mortgage loan in which payments are insured by the Federal Housing Administration is known as a/an...?
FHA-insured loan
Which of the following was created under the National Housing Act of 1934...?
Federal Housing Administration
The Servicemen's Readjustment Act is also known as the...?
G.I. Bill
A period of time that a lender offers to a borrower, which allows the borrower to make their required payments after the due date, is known as a...?
Grace period
VA loans are .............should the borrower default on their payments?
Guaranteed
One of the three major valuation methods, which determines the value of a property by applying a capitalization rate to a property's net operating income is known as the...?
Income capitalization approach
The 'Subject' section of the Uniform Residential Appraisal Report includes which of the following information...?
Legal description of the property
The Uniform Residential Loan Application includes which of the following information...?
Legal description of the property Names of the borrower and co-borrower The requested loan amount
Which of the following is an example of a long-term liability...?
Liens Child support Taxes
A property's NOI divided by the capitalization rate, equals the...?
Purchase price
One of the three major valuation methods, which compares a subject property's characteristics with those of comparable properties which have recently sold in similar transactions is known as the...?
Sales comparison approach
FHA loans may be insured by which of the following HUD programs...?
Section 203b Section 203k Section 251
An FHA loan used for the purchase and rehabilitation of an owner-occupied house may be insured by which HUD program...?
Section 203k
Insurance for adjustable rate mortgages are covered under what HUD program...?
Section 251
A seller's attempt to sell their property whereby the liens are greater than the value of the property, is known as a...?
Short sale
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
Mortgage insurance premium primarily benefits which of the following...?
The lender
An acceleration clause is included in which of the following...?
The promissory note
The objective of the Uniform Residential Loan Application is to identify which of the following...?
The property The borrower The loan amount requested by the borrower
What is the minimum down payment required on a VA loan...?
There is no minimum down payment required
What is the minimum down payment required on an FHA insured loan for a residential investment property...?
20%
What is the most commonly used term on residential mortgages...?
30 years
When applying for a VA loan, the maximum value of the property is established by which of the following...?
Certificate of Reasonable Value
A history of conveyances and encumbrances affecting the title of a property, which is used to determine how title came to be vested in current owner, is known as...?
Chain of title
This is an analysis in which a value estimate of a property is derived by estimating the replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding the market value of the land...?
Cost approach
The failure to fulfill a duty or promise is known as...?
Default
This is a judgment given by a court when the value of security pledged for a loan is insufficient to pay off the debt of the defaulting borrower...?
Deficiency Judgment
An exterior description of the subject property is listed under what section of the Uniform Residential Appraisal Report...?
Improvements
What information about the borrower must be included on the Uniform Residential Loan Application...?
Marital status
A one-time premium paid on FHA-insured loans at the closing, which is pursuant to the purchase is known as...?
Mortgage insurance premium
According to the sales comparison approach, if the comparable sale #1 includes a garage, and the subject property does not, what type of adjustment needs to be made...?
Negative adjustment
The HUD section 203 insures FHA loans for which of the following...?
One to four family homes
If an individual's assets exceed their liabilities, they are said to have a...?
Positive net worth
The division of certain settlement costs between a buyer and seller is known as...?
Proration
A Uniform Residential Loan Application gets filled out by which of the following...?
The borrower
When a borrower applies for a loan, they typically fill out which of the following...?
Uniform Residential Loan Application
Which of the following is used at the start of the loan application process...?
Uniform Residential Loan Application
The value derived from the use of something is known as...?
Value-in-use
Unique properties are typically valued using which appraisal method...?
Cost approach
A document which precisely shows the property lines, and size and location of improvements on a particular property, is known as a...?
Survey
When qualifying a borrower, the lender needs to verify which of the following...?
The borrower's employment status The borrower's income The borrower's assets and liabilities
Mortgage insurance for one to four family homes is covered by which HUD section...?
203b
What is the maximum front-end debt ratio for an FHA insured loan...?
31%
A non-judicial foreclosure may be used on a...?
Deed of Trust
Title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept is known as...?
Marketable title
A lien created by statute which exists against real property in favor of persons who have performed work or furnished materials for the improvement of the real property is known as a...?
Mechanic's lien
Home improvement loans are covered under what HUD title loan program..?
Title 1
Short sales typically occur when a property is said to be...?
Underwater
Lenders will generally loan up to ........a Veteran's available entitlement without a down payment?
4 times
What is the maximum back-end debt ratio for an FHA insured loan...?
43%
A delinquent borrower is said to be in...?
Default
In order to be eligible for a VA loan, the borrower must satisfy which of the following conditions...?
Must have served at least 90 consecutive days during wartime
An underwriter will review which of the following...?
The borrower's credit report The borrower's income statements The borrower's bank statements
The seller is primarily responsible for paying the broker's commission at closing...?
True
An individual at a lending institution who determines credit worthiness in order to qualify an applicant for a loan is known as a/an...?
Underwriter
The HUD section 203k program is NOT available for real estate investors...?
True
This is a condition in a real estate financing instrument giving the lender the power to declare all sums owed to the lender immediately due and payable upon the happening of an event, such as sale of the property, or a delinquency in the repayment of the note...?
Acceleration clause
A deed to real property accepted by a lender from a defaulting borrower to avoid the necessity of foreclosure proceedings by the lender is known as a...?
Deed in Lieu of Foreclosure
If a property is sold at a foreclosure auction for an amount less than the amount of outstanding debt on the property, the lender may file for a...?
Deficiency Judgment
Insurance to protect a real property owner or lender up to a specified amount against certain types of loss is known as...?
Title insurance
A non-judicial foreclosure is typically quicker to execute than a judicial foreclosure...?
True
