5.2

Question 0

An FHA loan allows you to buy a house with as little as ______ % down.

Answer 0

3.5%

Question 1

A mortgage loan is _____ by the Federal Housing Administration (FHA).

Answer 1

Insured

Question 2

True or False:

The FHA makes home loans.

Answer 2

False (It insures them)

Question 3

To get an FHA home loan, you’ll need to have a good credit history, and sufficient ______ to qualify for the loan.

Answer 3

Income

Question 4

Because FHA is insuring the loan, ______ payments must be made by the borrower.

Answer 4

Mortgage insurance premium

Question 5

The mortgage payment acronym “PITI” stands for Principal, Interest, Taxes, and _______.

Answer 5

Insurance

Question 6

A mortgage loan is ______ by the Department of Veteran Affairs (DVA).

Answer 6

Guaranteed

Question 7

A DVA loan requires a minimum of ______% down payment.

Answer 7

0%

Question 8

True or False:

With a DVA loan, the veteran does not have to occupy the home.

Answer 8

False

Question 9

______ is a type of mortgage where a mortgagee makes payments to a mortgagor.

Answer 9

Reverse annuity

Question 10

DVA loans allow a loan-to-value ratio (LTV) of up to ______.

Answer 10

100%

Question 11

True or False:

With a DVA loan, an escape clause must be part of the purchase agreement.

Answer 11

True

Question 12

A mortgage loan that is not a DVA or FHA loan is a _______ loan.

Answer 12

Conventional

Question 13

The ______ clause in the mortgage document allows a lender to accelerate the loan if the property is sold without informing them.

Answer 13

Alienation or Due-on-Sale

Question 14

A _____ mortgage covers more than one parcel of land.

Answer 14

Blanket

Question 15

A/an ______ is a conventional mortgage with less than 20% down payment.

Answer 15

Insured conventional

Question 16

The fee FHA charges borrowers is the _______ (also known as the MIP).

Answer 16

Mortgage insurance premium

Question 17

An insured conventional loan requires ______ (also known as PMI),

Answer 17

Private Mortgage Insurance

Question 18

A/an ______ mortgage allows the borrower to obtain further money advances at a later date.

Answer 18

Open-end mortgage

Question 19

A/an _____ is mortgage financing where the buyer borrows from the seller instead of a bank.

Answer 19

Purchase money mortgage

Question 20

Homebuyers can apply for an insured conventional loan with as little as _____% down payment.

Answer 20

5%

Question 21

A/an ______ is a mortgage that includes personal property.

Answer 21

Package Mortgage

Question 22

Loans for new construction or remodeling projects involve ______ financing to pay contractors as the improvements are completed.

Answer 22

Interim

Question 23

A/an ______ is junior financing (second mortgage) in which the buyer makes payments to another party - usually the seller - who, in turn, continues to make payments on the first loan.

Answer 23

Wraparound mortgage

Question 24

A/an _______ (also known as ARM) is a loan in which the interest rate adjusts at pre-determined times, and the adjustment is based on an economic index.

Answer 24

Adjustable rate mortgage

Question 25

A _____ occurs when a seller owes more money on the mortgage loan than the property is selling for, and the lender agrees to remove the mortgage lien on the property to allow the transfer of title.

Answer 25

Short-sale

Question 26

A _______ amortization loan is when the payment is less than the interest owed each moth, and the balance increases.

Answer 26

Negative