Finance - Need To Know Flashcards
What kind of loan is guaranteed?
VA
What kind of loan is it when the mortgagee (lender) makes the payment?
Reverse annuity
What must a veteran first get to obtain a VA loan?
Certificate of Eligibility
Who are the vendor and vendee?
Seller and Buyer
When a developer obtains a construction loan on a subdivision, and then sells individual parcels, the loan should contain what clause?
Partial release clause
What kind of mortgage would a business use if both real and personal property are collateral?
Package
Who makes government insured loans?
Approved lenders,
*Not FHA, VA, FNMA, etc.
What clause in a mortgage allows the lender to adjust the interest rate?
Escalation clause
What is a mortgage where payments increase the first year, then level off?
Graduated
What is it called when the seller is the lender?
Seller finance
A.K.A Carryback
When a buyer uses very little of their own money to purchase a home it’s called _________
Leverage
A couple are selling and buying a home.however they are going to close on the new home before closing on the sale of the old home. In this situation they might get what kind of loan?
A Swing, Gap, or Bridge loan.
A person buys a property utilizing a wrap around mortgage. What conditions will benefit the buyer?
Making payments to escrow, which in turn pays the underlying mortgage payments and the seller.
What is FNMA?
Fannie Mae, or the Federal National Mortgage Association.
-a major secondary money market player. It is privately owned, but federally regulated.
How is a certificate of estoppel used?
To obtain the loan balance of the mortgage.
