Financing Flashcards
7 cards from real Real Estate License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Financing flashcards as text
A VA loan is a government-backed mortgage available primarily to:
Answer: Eligible veterans and service members
VA loans are guaranteed by the Department of Veterans Affairs for qualifying veterans and military members.
What is the loan-to-value (LTV) ratio if a buyer borrows $160,000 on a $200,000 home?
Answer: 80%
LTV equals loan divided by value: 160,000 / 200,000 = 80%.
Which entity is a secondary mortgage market participant that buys loans from lenders?
Answer: Fannie Mae
Fannie Mae purchases mortgages in the secondary market, providing lenders liquidity.
An FHA loan is insured by the:
Answer: Federal Housing Administration
FHA loans are insured by the Federal Housing Administration, allowing lower down payments.
A point paid to a lender at closing typically equals what percentage of the loan amount?
Answer: 1%
One discount or origination point equals 1% of the loan amount.
When a seller finances the buyer's purchase directly, it is called a:
Answer: Purchase-money mortgage
A purchase-money mortgage is seller financing where the seller acts as the lender.
Hypothecation in financing refers to:
Answer: Pledging property as collateral without giving up possession
Hypothecation lets a borrower pledge property as security while retaining possession and use.