Unit 9: Government-Sponsored and Other Financing Flashcards
A California veteran might have a home loan insured by:
FHA
FHA appraisal value is used to set the upper limit of:
The loan amount
In addition to a monthly charge, FHA mortgage insurance includes a one-time payment on a purchase loan that is:
1.75% of the loan amount.
For an existing structure, the maximum FHA mortgage loan term is:
30 years
One discount point will increase a lender’s effective yield by approximately:
1/8%
Four discount points will increase a lender’s effective yield by approximately:
1/2%
On FHA loans, seller contributions, including discounts and closing costs, cannot exceed:
6% of the acquisition cost
Five different graduated payment mortgages are approved by:
FHA
A veteran can have a home loan guaranteed by:
VA
The notice of value sets the upper limit of value for:
The guarantee
Using the benefits of the GI Bill, a veteran cannot buy:
A Farm
A veteran can be given a home loan on property owned by:
CalVet
A CalVet purchase loan must be applied for:
Before a contract of sale is signed.
CalVet Loans are NOT available for:
Commercial Property
Many seller-financed purchases are examples of:
Creative Financing
An installment sales contract is also called
a land contract
In a sale-leaseback
both land and buildings can be sold.
The secondary mortgage market does NOT deal in:
Issuing Loans
Which is NOT a part of the primary mortgage market:
Fannie Mae
Ginnie Mae securities are NOT backed by:
CalVet Loans
Government Loans
- FHA Insured
- VA Guaranteed
- CalVet
The minimum cash investment made by a borrower on an FHA-insured loan must be at least:
3.5% of the sales price.
203 (b)
The vast majority of FHA loans
VA Guaranteed Loan
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.
Land Contract
No bank is involved in the transaction. The seller retains the title of the land until the contract is paid in full.
FHA and VA Loan applicant sends an application to:
A regular lender
A CalVet applicant sends an application to:
The state of California
