Real Estate Finance Principles Flashcards

1
Q

In a “Texas Bootstrap” loan, all Owner-Builders are required to provide at least __% of the labor necessary to build or rehab their housing by working with a state-certified Nonprofit Owner-Building Housing Provider (NOHP)

A

65

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2
Q

Adjustable Rate Mortgages, Condo Mortgages, Disaster Victims Mortgages, and Energy-Efficiency Mortgages are all types of loans available through:

A

FHA

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3
Q

A discount point is a fee charged by the lender:

A

equal to 1 percent of the loan amount.

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4
Q

“Fair Isaac Corporation”

A

FICO

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5
Q

The advantage of seller/owner financing is that:

A
  1. the seller may be more flexible on payment schedules
  2. the seller may be more willing to finance a buyer with a low credit rating
  3. the owner may be able to provide financing for a property that a lending institution would not be willing to finance due to age or condition
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6
Q

The __ market is the market where borrowers and mortgage lenders meet to negotiate terms and conduct mortgage transactions.

A

Primary mortgage

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7
Q

The __ is a secondary loan for real property, that incorporates the first loan without paying it off.

A

Wraparound loan

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8
Q

A $200,000 mortgage loan on a $250,000 home is what “loan to value”?

A

0.8

LVR = Mortgage amount/appraised value of property

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9
Q

Many lenders require PMI if more than __ of the property value is financed

A

80%

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