COLIBRI NJ REAL ESTATE FULL SOLUTION
PAPER 2026 QUESTIONS WITH ANSWERS
GRADED A+
◉A self-liquidating loan requires a balloon payment be made at the
end of the loan term.. Answer: False
◉The loan amount (principal) is $100,000 and the interest rate is
8%. What is the annual interest paid?. Answer: $8,000
◉A conforming loan is a loan that. Answer: follows the secondary
market criteria set by Fannie Mae/Freddie Mac.
◉Private mortgage insurance (PMI) is required for. Answer: 90%
conventional loans
◉The amount of private mortgage insurance coverage can vary, but
is typically 20% to 25% of the loan amount.. Answer: True
,◉The amount of money borrowed compared to the appraised value
or the sale price of a property, whichever is less, is called the.
Answer: loan-to-value ratio.
◉A buyer of a $150,000 home puts $15,000 down and receives a
fixed-rate loan for $135,000 from a lender. What type of loan does
this buyer have?. Answer: 90% conventional loan
◉The sale price of the home a buyer wants to buy is $161,500. The
appraisal on the property comes in at $163,000. If the lender wants
an LTV of 80%, how much is the lender willing to lend?. Answer:
$129,200
◉Subordinate financing is when a buyer borrows money from
another source to pay part of the purchase price or closing costs..
Answer: False
◉A loan amount (principal) is $50,000 and the interest rate is 11%.
What is the annual interest paid?. Answer: $5,500
◉Does HUD limit the maximum loan amount for FHA loans?.
Answer: Yes
◉For a VA loan, which is customarily a cost that the borrower must
pay? Select all correct responses.. Answer: appraisal fee
,variable funding fee
◉What does PITI stand for?. Answer: principal, interest, taxes, and
insurance
◉Borrowers with FHA loans have to establish legitimate occupancy
of their property, which means having to occupy the property as a
principal residence within ________ of signing a security agreement
and live in the house for at least ________.. Answer: 60 days; one year
◉Assuming a Section 502 loan applicant meets the income eligibility
and the house is in an approved area, the borrower may receive
______ financing, based on the appraised value or acquisition cost,
whichever is less.. Answer: 100%
◉For FHA loans, borrowers with no credit score or with credit
scores below ________ may not exceed the standard ratios of 31/43..
Answer: 580
◉In addition to income limits with FHA loans, HUD limits the
maximum loan amount.. Answer: False
◉VA loans are available to eligible veterans for the purchase of
which type of property? Select all correct responses.. Answer: multi-
, family dwellings up to four units with one unit as a primary
residence.
single-family homes as a secondary residence.
◉Under a _________, the seller actually holds title to the property as
security, not just a mortgage lien. The buyer/debtor has the right to
possess and enjoy the land, but is not the legal owner.. Answer: land
contract
◉What document do lenders use to verify the eligibility of the
borrower for a VA loan?. Answer: Certificate of Eligibility
◉A trade line refers to an involuntary inquiry on an individual's
credit report.. Answer: False
◉A 12-month pay history on a utility account will show as a trade
line on a credit report.. Answer: False
◉When a credit card or loan is secured, it means that there is
another party linked to the account.. Answer: False
PAPER 2026 QUESTIONS WITH ANSWERS
GRADED A+
◉A self-liquidating loan requires a balloon payment be made at the
end of the loan term.. Answer: False
◉The loan amount (principal) is $100,000 and the interest rate is
8%. What is the annual interest paid?. Answer: $8,000
◉A conforming loan is a loan that. Answer: follows the secondary
market criteria set by Fannie Mae/Freddie Mac.
◉Private mortgage insurance (PMI) is required for. Answer: 90%
conventional loans
◉The amount of private mortgage insurance coverage can vary, but
is typically 20% to 25% of the loan amount.. Answer: True
,◉The amount of money borrowed compared to the appraised value
or the sale price of a property, whichever is less, is called the.
Answer: loan-to-value ratio.
◉A buyer of a $150,000 home puts $15,000 down and receives a
fixed-rate loan for $135,000 from a lender. What type of loan does
this buyer have?. Answer: 90% conventional loan
◉The sale price of the home a buyer wants to buy is $161,500. The
appraisal on the property comes in at $163,000. If the lender wants
an LTV of 80%, how much is the lender willing to lend?. Answer:
$129,200
◉Subordinate financing is when a buyer borrows money from
another source to pay part of the purchase price or closing costs..
Answer: False
◉A loan amount (principal) is $50,000 and the interest rate is 11%.
What is the annual interest paid?. Answer: $5,500
◉Does HUD limit the maximum loan amount for FHA loans?.
Answer: Yes
◉For a VA loan, which is customarily a cost that the borrower must
pay? Select all correct responses.. Answer: appraisal fee
,variable funding fee
◉What does PITI stand for?. Answer: principal, interest, taxes, and
insurance
◉Borrowers with FHA loans have to establish legitimate occupancy
of their property, which means having to occupy the property as a
principal residence within ________ of signing a security agreement
and live in the house for at least ________.. Answer: 60 days; one year
◉Assuming a Section 502 loan applicant meets the income eligibility
and the house is in an approved area, the borrower may receive
______ financing, based on the appraised value or acquisition cost,
whichever is less.. Answer: 100%
◉For FHA loans, borrowers with no credit score or with credit
scores below ________ may not exceed the standard ratios of 31/43..
Answer: 580
◉In addition to income limits with FHA loans, HUD limits the
maximum loan amount.. Answer: False
◉VA loans are available to eligible veterans for the purchase of
which type of property? Select all correct responses.. Answer: multi-
, family dwellings up to four units with one unit as a primary
residence.
single-family homes as a secondary residence.
◉Under a _________, the seller actually holds title to the property as
security, not just a mortgage lien. The buyer/debtor has the right to
possess and enjoy the land, but is not the legal owner.. Answer: land
contract
◉What document do lenders use to verify the eligibility of the
borrower for a VA loan?. Answer: Certificate of Eligibility
◉A trade line refers to an involuntary inquiry on an individual's
credit report.. Answer: False
◉A 12-month pay history on a utility account will show as a trade
line on a credit report.. Answer: False
◉When a credit card or loan is secured, it means that there is
another party linked to the account.. Answer: False
