Real Estate License Financing 3

Question 1

A VA loan is a government-backed mortgage available primarily to:

Accepted Answer

Eligible veterans and service members

Answer

VA loans are guaranteed by the Department of Veterans Affairs for qualifying veterans and military members.

Question 2

What is the loan-to-value (LTV) ratio if a buyer borrows $160,000 on a $200,000 home?

Accepted Answer

80%

Answer

LTV equals loan divided by value: 160,000 / 200,000 = 80%.

Question 3

Which entity is a secondary mortgage market participant that buys loans from lenders?

Accepted Answer

Fannie Mae

Answer

Fannie Mae purchases mortgages in the secondary market, providing lenders liquidity.

Question 4

An FHA loan is insured by the:

Accepted Answer

Federal Housing Administration

Answer

FHA loans are insured by the Federal Housing Administration, allowing lower down payments.

Question 5

A point paid to a lender at closing typically equals what percentage of the loan amount?

Accepted Answer

1%

Answer

One discount or origination point equals 1% of the loan amount.

Real Estate License Practice Test