TX Real Estate Finance - Champions Exam Questions With Highest Score

lenders bear less risk in making an FHA loan beacuse the FHA - ANSWER-FHA is default insurance that will pay a claim to a lender in the event of a default by the homeowner portfolio loan - ANSWER-retained by the lender and it is not sold in the secondary market. commercial banks are active in residential mortgage lending an appropriate loan for a property in need of significant rehabilitation would be - ANSWER-construction to permanent loan a borrower plans to be in a home long term, or the borrower is averse to risk, the best choice mortgage is a ____________ - ANSWER-fixed-rate mortgage Freddie Mac - ANSWER-established in 1970 for the purpose of purchasing mortgages in the secondary market initial rate - ANSWER-the fixed rate charged on an adjustable rate mortgage (ARM) until the first adjustment date gift funds cannot come from __________ - ANSWER-cannot come from a party related to the transaction (agent, builder, broker, seller) or be cash on hand Torrens System - ANSWER-a property owner obtains a certificate munch like an auto title that is recorded in public records max LTV ratio on an FHA loan - ANSWER-96.5%