MRP Real Estate Practices & Compliance for Military Families 3 — Questions and Answers
Question 1: Which VA loan fee is typically required at closing and can be financed into the loan amount, varying based on the type of service and whether the borrower has used the VA benefit before?
- Origination fee
- Funding fee (Correct answer)
- Discount points
- Processing fee
Correct answer: Funding fee
The VA funding fee supports the VA loan program and varies by service type, down payment, and prior use of VA benefits; it can be rolled into the loan.
Question 2: A military buyer is purchasing a home with a VA loan. The VA appraisal comes in $15,000 below the agreed purchase price. Which statement is most accurate?
- The buyer must pay the difference in cash
- The seller must reduce the price to the appraised value
- The buyer and seller can negotiate, but the VA will not guarantee the loan above the appraised value (Correct answer)
- The VA will automatically increase the appraisal if the buyer disputes it
Correct answer: The buyer and seller can negotiate, but the VA will not guarantee the loan above the appraised value
The VA loan can only be guaranteed up to the appraised value; the parties may negotiate the price difference but the lender cannot loan more than the VA-established value.
Question 3: Under SCRA protections, a servicemember can request a court to stay (delay) civil proceedings for at least how many days upon entering active duty?
- 30 days
- 60 days
- 90 days (Correct answer)
- 180 days
Correct answer: 90 days
The SCRA allows servicemembers to request at least a 90-day stay in civil court proceedings, including foreclosure actions, when military service materially affects their ability to participate.
Question 4: Which program assists military homeowners who owe more than their home is worth when forced to sell due to PCS orders?
- HAP (Homeowners Assistance Program) (Correct answer)
- SCRA mortgage deferral
- VA IRRRL streamline refinance
- DoD Relocation Assistance Program
Correct answer: HAP (Homeowners Assistance Program)
The Homeowners Assistance Program (HAP) provides financial relief to servicemembers who must sell at a loss when their duty station changes.
Question 5: A real estate agent representing a military buyer should advise that a VA loan cannot be used to purchase which type of property?
- A single-family home
- A duplex where the veteran will occupy one unit
- A vacant lot with no plans to build immediately (Correct answer)
- A condominium in a VA-approved complex
Correct answer: A vacant lot with no plans to build immediately
VA loans require the property to be immediately habitable as a primary residence; bare land without an approved construction plan does not qualify.
Question 6: The Military Lending Act (MLA) caps the Military Annual Percentage Rate (MAPR) on consumer credit extended to covered borrowers (active duty and dependents) at:
- 6%
- 18%
- 28% MAPR
- 36% MAPR (Correct answer)
Correct answer: 36% MAPR
The MLA caps the MAPR at 36% for most consumer credit products offered to active duty servicemembers and their covered dependents.
Question 7: When an MRP agent lists a military-owned home, which disclosure requirement is triggered if the home is in a FEMA-designated Special Flood Hazard Area?
- The seller must install flood-resistant landscaping
- The buyer must be informed they may be required to purchase flood insurance (Correct answer)
- The VA automatically denies the loan
- The listing must include a FEMA elevation certificate in the MLS
Correct answer: The buyer must be informed they may be required to purchase flood insurance
Federal law requires sellers to disclose if a property is in a Special Flood Hazard Area, and lenders will require the buyer to obtain flood insurance.
MRP Real Estate Practices & Compliance for Military Families 3
Which VA loan fee is typically required at closing and can be financed into the loan amount, varying based on the type of service and whether the borrower has used the VA benefit before?