Mortgage Mortgage Mortgage Products and Programs Questions and Answers 2

Question 1

Which mortgage product allows a borrower to finance both the purchase price and renovation costs in a single loan?

Accepted Answer

FHA 203(k) loan

Answer

VA loan

Answer

USDA loan

Answer

Jumbo loan

Question 2

What is the primary advantage of a USDA Rural Development loan for eligible borrowers?

Accepted Answer

No down payment required

Answer

No credit check required

Answer

No closing costs

Answer

No income verification

Question 3

Which type of mortgage has an interest rate that remains the same for an initial period and then adjusts periodically?

Accepted Answer

Hybrid ARM

Answer

Fixed-rate mortgage

Answer

Interest-only mortgage

Answer

Balloon mortgage

Question 4

What distinguishes a conforming loan from a non-conforming loan?

Accepted Answer

It meets Fannie Mae and Freddie Mac guidelines

Answer

It is backed by the FHA

Answer

It requires no private mortgage insurance

Answer

It has a variable interest rate

Question 5

A borrower seeking a mortgage for a property valued at $1.2 million in most U.S. counties would likely need which type of loan?

Accepted Answer

Jumbo loan

Answer

Conventional conforming loan

Answer

FHA loan

Answer

USDA loan

Question 6

Which mortgage program is exclusively available to eligible military service members, veterans, and surviving spouses?

Accepted Answer

VA loan

Answer

FHA loan

Answer

HomeReady mortgage

Answer

Home Possible mortgage