1 of 10 - Which of the following are functions of the Federal Reserve?
Buying/Selling of Securities and Discount Rates
Participation Financing
Debt Coverage
Oversees Lending Laws
You answered correctly
2 of 10 - Jan is moving into a new home. Her husband recently died during military service in the Middle East. She cannot afford a very large down payment at this time, but wants to get her children into their first home to provide some stability after the loss of their father. What are Jan's options?
Jan qualifies for an FHA loan, if her income is adequate. There is usually a small down payment required.
Jan qualifies for a VA loan due to her status as a veteran's unmarried widow. The VA loan does not require a down payment.
Jan cannot qualify for both types of loans.
Both A and B
You answered incorrectly
FHA loans are available to anyone with qualified income and require a down payment as low as 3.5%. VA loans are available to widows of veterans who have not remarried and require no down payment. Jan is eligible for both if her income is adequate for the FHA loan.
3 of 10 - Conchita is applying for a VA loan. She has served in the military, on active service, for ninety days. She is trying to buy a town home near her base for easier commuting. The town home has qualified with an appraisal and has been issued a Certificate of Reasonable Value. Will Conchita be considered for a VA loan?
Yes, she has met all of the criteria for a Certificate of Eligibility.
No, she has not served the 181 days of active service required.
No, she has not been approved for a Certificate of Eligibility.
None of the Above
You answered correctly
4 of 10 - At the present time, funds are limited for CalVet Program mortgage loans. A decision must be made to give one veteran a loan over another. Veteran A has been in the military service for 20 years and is a four-time decorated hero. He wants to buy an Oregon farm with the loan. Veteran B has been in the military four years. He lost his right leg in a battle in Afghanistan. He wants to buy a small home in Las Vegas for himself and his mother, who will live with him. Which veteran will they choose and why?
Veteran A will be chosen based on his years of service, his decoration, and his desire to buy a farm.
Veteran A will be chosen because he is still on active duty; Veteran B has received a discharge from service, making him less desirable for the program's loan.
Veteran B will be chosen because his family members will take priority due to his injury.
Neither will be chosen for the loan because both are planning on buying homes outside the state.
You answered correctly
5 of 10 - Bruce, a private in the US Army, has applied for his Certificate of Eligibility and been approved. He wants to purchase a condo for himself. What's the maximum amount lenders will loan Bruce, based on his veteran status?
A veteran's basic entitlement is $100,000. Lenders generally lend up to four times the available entitlement without a down payment. There is no maximum amount, but generally lenders limit VA loans to $400,000.
A veteran's basic entitlement is $104,250. Lenders generally lend up to four times the available entitlement without a down payment. There is no maximum amount, but generally lenders limit VA loans to $417,000.
A veteran's basic entitlement is $104,250. Lenders generally lend up to four times the available entitlement without a down payment. There is no maximum amount, but generally lenders limit VA loans to $425,000.
A veteran's basic entitlement is $104,250. Lenders generally lend up to four times the available entitlement without a down payment. There is no maximum amount, but generally lenders limit VA loans to $550,000.
You answered correctly
6 of 10 - MTH Bank has given the McKelvey's a written pledge to lend $250,000 on a new construction home, for 30 years, at 6.53%. The McKelvey's will now present this pledge to the subdivision's sales agent to continue with their new home's construction. Which loan definition applies?
Conditional Approval
Underwriting
Exculpatory Clause
Non-Recourse Clause
You answered incorrectly
A conditional loan approval is a written pledge by a lender to lend a certain amount of money to a qualified borrower on a particular piece of real estate for a specified time under specific terms. It is more formal than a preliminary loan approval.
7 of 10 - Gerald, a sergeant in the Marine Corps, is getting married and wants to purchase a home. How does he begin the process of getting a VA loan? What follows?
Gerald must have the home appraised and be issued a Certificate of Reasonable Value. He then must apply for the loan through the financial institution of his choice.
Gerald must first apply for a Certificate of Eligibility to obtain a VA loan. The home must qualify with an appraisal and be issued a Certificate of Reasonable Value.
Gerald only need to fill out the necessary paperwork through the Veteran's Administration Office in his area.
None of the Above
You answered correctly
8 of 10 - Which of the major warehousing agencies in the Secondary Market are not regulated by a government agency?
Federal National Mortgage Association (Fannie Mae)
Government National Mortgage Association (Ginnie Mae)
Federal Home Loan Mortgage Corporation (Freddie Mac)
None of the Above
You answered incorrectly
Fannie Mae is a private corporation regulated by the federal government via HUD; Ginnie Mae is also controlled by HUD as is Freddie Mac.
9 of 10 - Jeanne and Mark are buying a home. They've been told their mortgage payment will be $1,072 per month. There's also an additional amount of $335.62 being added to the monthly payment, bringing their total to $1,407.62. It was explained the additional $335.62 is to cover insurance and property taxes. Which loan definition applies?
Estoppel
Disintermediation
Impounds
In Contract
You answered incorrectly
Impounds are funds of the buyer's money that the lender sets aside for future needs associated with the property, such as insurance and taxes. Impounds are sometimes referred to as the buyer's escrow.
10 of 10 - What is the major difference between a VA Loan and a FHA Loan?
FHA insures repayment of the loan; VA guarantees repayment of the loan.
FHA guarantees repayment of the loan; VA insures repayment of the loan.
FHA lends the money for the actual loan; VA guarantees repayment of the loan.
FHA insures repayment of the loan; VA lends the money for the actual loan.
You answered incorrectly
There are several differences, including who qualifies and the amount of down payment required, but the major difference is that the FHA insures the lender against loss while the VA guarantees the loan by making the veteran personally liable.
