C1U9 Government-Sponsored and Other Financing

Question 1

A California veteran might have a home loan insured by:

a. FHA
b. VA
c. CalVet
d. Fannie Mae

Answer 1

a. FHA

Question 2

FHA appraisal value is used to set the upper limit of:

a. the purchase price
b. the loan amount
c. the construction cost
d. the seller contributions

Answer 2

b. the loan amount

Question 3

In addition to a monthly charge, FHA mortgage insurance includes a one-time payment on a purchase loan that is:

a. 1.75% of the loan amount
b. variable
c. negotiable
d. determined by the lender

Answer 3

a. 1.75% of the loan amount

Question 4

For an existing structure, the maximum FHA mortgage loan term is:

a. 15 years and 32 days
b. 25 years
c. 30 years
d. 40 years

Answer 4

c. 30 years

Question 5

One discount point will increase a lender’s effective yield by approximately:

a. 1/4%
b. 1/8%
c. 1/2%
d. 1%

Answer 5

b. 1/8%

Question 6

Four discount points will increase a lender’s effective yield by approximately:

a. 1/4%
b. 1/8%
c. 1/2%
d. 4%

Answer 6

c. 1/2%

Question 7

On FHA loans, seller contributions, including discounts and closing costs, cannot exceed:

a. $5,000
b. 4%
c. five points
d. 6% of acquisition cost

Answer 7

d. 6% of acquisition cost

Question 8

Five different graduated payment mortgages are approved by:

a. FHA
b. VA
c. CalVet
d. Ginnie Mae

Answer 8

a. FHA

Question 9

A veteran can have a home loan guaranteed by:

a. FHA
b. VA
c. CalVet
d. Fannie Mae

Answer 9

b. VA

Question 10

The notice of value sets the upper limit of value for:

a. the purchase price
b. the loan
c. the guarantee
d. none of the above

Answer 10

c. the guarantee

Question 11

Using the benefits of the GI Bill, a veteran cannot buy:

a. a house
b. a condominium
c. a farm
d. a manufactured home

Answer 11

c. a farm

Question 12

A veteran can be given a home loan on a property owned by:

a. FHA
b. VA
c. CalVet
d. Fannie Mae

Answer 12

c. CalVet

Question 13

A CalVet purchase loan must be applied for:

a. within a year of property purchase
b. before closing
c. before a contract of sale is signed
d. before talking to a property seller

Answer 13

c. before a contract of sale is signed

Question 14

CalVet loans are NOT available for:

a. single-family homes
b. manufactured homes
c. working farms
d. commercial property

Answer 14

d. commercial property

Question 15

Many seller-financed purchases are examples of

a. institutional lending
b. creative financing
c. mortgage-backed securities
d. blended-rate mortgages

Answer 15

b. creative financing

Question 16

An installment sales contract also is called:

a. a GEM
b. a GPM
c. a land contract
d. a bill of sale

Answer 16

c. a land contract

Question 17

In a sale-leaseback:

a. land is never sold
b. buildings are always sold
c. both land and buildings can be sold
d. only a leasehold interest is sold

Answer 17

c. both land and buildings can be sold

Question 18

The secondary mortgage market does NOT deal in:

a. primary mortgage market instruments
b. junior liens
c. issuing loans
d. mortgage-backed securities

Answer 18

c. issuing loans

Question 19

Which is NOT a part of the primary mortgage market?

a. FHA
b. VA
c. CalVet
d. Fannie Mae

Answer 19

d. Fannie Mae

Question 20

Ginnie Mae securities are NOT backed by:

a. FHA-insured loans
b. VA-insured loans
c. Farmer Mac-guaranteed loans
d. CalVet loans

Answer 20

d. CalVet loans