Unit 9: Government-Sponsored and Other Financing

Question 1

A California veteran might have a home loan insured by:

Answer 1

FHA

Question 2

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

Answer 2

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:

Answer 3

1.75% of the loan amount.

Question 4

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

Answer 4

30 years

Question 5

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

Answer 5

1/8%

Question 6

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

Answer 6

1/2%

Question 7

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

Answer 7

6% of the acquisition cost

Question 8

Five different graduated payment mortgages are approved by:

Answer 8

FHA

Question 9

A veteran can have a home loan guaranteed by:

Answer 9

VA

Question 10

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

Answer 10

The guarantee

Question 11

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

Answer 11

A Farm

Question 12

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

Answer 12

CalVet

Question 13

A CalVet purchase loan must be applied for:

Answer 13

Before a contract of sale is signed.

Question 14

CalVet Loans are NOT available for:

Answer 14

Commercial Property

Question 15

Many seller-financed purchases are examples of:

Answer 15

Creative Financing

Question 16

An installment sales contract is also called

Answer 16

a land contract

Question 17

In a sale-leaseback

Answer 17

both land and buildings can be sold.

Question 18

The secondary mortgage market does NOT deal in:

Answer 18

Issuing Loans

Question 19

Which is NOT a part of the primary mortgage market:

Answer 19

Fannie Mae

Question 20

Ginnie Mae securities are NOT backed by:

Answer 20

CalVet Loans

Question 21

Government Loans

Answer 21

• FHA Insured
• VA Guaranteed
• CalVet

Question 22

The minimum cash investment made by a borrower on an FHA-insured loan must be at least:

Answer 22

3.5% of the sales price.

Question 23

203 (b)

Answer 23

The vast majority of FHA loans

Question 24

VA Guaranteed Loan

Answer 24

A loan guaranteed by the government. Does not need a down payment. 2.15% funding fee of the loan amount paid at the close of the sale.

Question 25

Land Contract

Answer 25

No bank is involved in the transaction. The seller retains the title of the land until the contract is paid in full.

Question 26

FHA and VA Loan applicant sends an application to:

Answer 26

A regular lender

Question 27

A CalVet applicant sends an application to:

Answer 27

The state of California