Chapter 10 Flashcards
Which of the following is an institutional lender?
life insurance company
The three major credit reporting agencies are:
Experian, Equifax, and TransUnion.
A Seller's Financial Disclosure Statement must be signed by the: all of the answers are correct broker buyer seller
all of the answers are correct
A credit report is used to help measure a borrower’s:
desire to pay
The CalHFA program:
is designed to help first time homebuyers
The maximum FHA insured loan under the 203b program for a home with an acquisition cost of $100,000 is:
$96,500
Sylvia wants to purchase a home. She is recently divorced and is receiving alimony for the next ten years in addition to child support for her three year old son. She has been in her present job for five years. What sources of income can she include in her loan application?
Her salary from her job, alimony, and child support.
The major source for junior loans (2nds, 3rds, etc.) is:
private parties’
Which FHA program is the most popular?
203b
Which of the following types of loans are made only to individuals who are intending to occupy the property as a personal residence?
VA loan
A secondary mortgage market is where:
existing lenders sell to other lenders and investors
Fannie Mae is the:
Federal National Mortgage Association
When a borrower pays mortgage insurance on an FHA loan, this type of insurance:
protects the lender against a shortage in the event of a default
Which organization requires a CRV appraisal before approving a loan?
U. S. Department of Veterans Affairs
Who does not lend their money, but instead earns a fee for bringing a borrower and lender together?
mortgage broker
Insurance companies are one of the major sources for conventional loans. Insurance companies:
loan funds primarily on large commercial properties
The term impounds most nearly means:
reserves
Which of the following best defines a purchase money mortgage?
a mortgage used to acquire a property
For an REIT to avoid double taxation, it must distribute what percentage of its income each year to the shareholders/investors?
95%
For gross income purposes, most lenders want the borrower to have at least a:
2 year work history
Private mortgage insurance (PMI):
insures the lender for the top portion of the loan
The VA will guarantee loans on the following properties
mobile homes
townhomes
Which of the following types of loans are made only to individuals who are intending to occupy the property as a personal residence?
VA
For qualifying purposes, monthly housing payments include:
principal, interest, taxes, insurance, homeowner dues, if any
When a borrower pays mortgage insurance on an FHA loan, this type of insurance:
protects the lender against a shortage in the event of a default
Which government program carries a prepayment penalty if the loan is paid off in less than 5 years?
none have prepayment penalties
When the Department of Veteran’s Affairs “guarantees” a loan, it does so in order to protect the:
lender
The primary market is where:
new loans are granted to borrowers’
A loan made by a lender who intends to keep the loan until paid:
portfolio loan
Which program has the seller deed title to the government?
Cal-Vet
