Real Estate U Exam Prep & Study Guide with complete and Verified solutions | Latest 2025/2026 Update.

Real Estate U Exam Prep & Study i,- i,- i,- i,- i,- i,- i,-




Guide with complete and Verified i,- i,- i,- i,- i,-




solutions | Latest 2025/2026 Update. i,- i,- i,- i,-




Mobile Homes -Account for roughly 8% of all housing units in
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the United States.
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-A structure transportable in one or more sections, designed and
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equipped to contain not more than two dwelling units to be used
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with or without a foundation system.
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-only about half of mobile home owners actually own the land
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where their house is parked.
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Modular Homes -Modular homes are built in movable
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sections called modules in a factory according to a buyer's
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specifications on a particular floor plan designed by the company i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-



offering the home for sale. i,- i,- i,- i,-




-Assembled on a permanent foundation, so moving is not usually i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-



an option.
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-A system for the construction of dwellings and other
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improvements to real property through the on-site assembly of i,- i,- i,- i,- i,- i,- i,- i,- i,-



component parts (modules) that have been mass produced away i,- i,- i,- i,- i,- i,- i,- i,- i,-



from the building site.
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,Time-Share Homes A form of subdivision of real property into
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rights to the recurrent, exclusive use or occupancy or a lot, parcel
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unit, or segment of real property, on annual or some other
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periodic basis, for a specified period of time.
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-Fee Simple
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-Right-to-Use
-Leasehold


Mortgage Loan Type Examples i,- i,- i,- i,- i,--Federal Housing i,- i,-



Administration (FHA) i,- i,-




-Veteran Affairs i,- i,-




-Fannie Mae "Home Ready" i,- i,- i,-




-"HUD Good Neighbor Next Door"
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Appreciation Monetary gain resulting from the increase in the
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market value of an investment, excluding applications of capital.
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Foe example, a house which is sold five years after it was
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purchased for 50% more than the purchase price.
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Capital Gains -Is the effective profit or loss realized based on
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the difference between sale price of a piece of real estate and the
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cost of acquiring the asset.
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,-There are short term and long term capital gains. Real estate
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investments purchased and sold within a one-year period have a
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higher tax rate than assets held longer than 12 months. The
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current tax rate is based on marital status, tax brackets, and how
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the property was acquired.
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Straight Line Depreciation A method of depreciation under
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which improvements are depreciated at a constant rate
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throughout the estimated useful life of the improvement. i,- i,- i,- i,- i,- i,- i,-




Tax-Deferred Exchange The trade or exchange of one real i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-



property for another without the need to pay income taxes on
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the gain at the time of trade.
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Mortgage Interest The fee lenders charge to offer loans
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secured by ether a primary or secondary home, used primarily for
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personal use. (Interest is calculated every month, or after every
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scheduled payment, on the remaining principle over the term of
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the mortgage.
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Loan Organization Fees
i,- Lenders charge administrative fees i,- i,- i,- i,- i,- i,- i,-



for reviewing applications, verifying credit worthiness and
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processing paperwork prior to issuing a loan. (The fee is based on
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the price of the real estate and typically equals 1% of the loan
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value.)

, "Buydown" Commonly used when buyers are looking to get i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-



discounted rates at least for the first years of their mortgage. i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-




Private Mortgage Insurance (PMI) i,- i,- i,- i,- i,- Protects a lender against i,- i,- i,- i,-



losses due to default on the loan.
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Top Earners
i,- Classified as a single taxpayer that earns more i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-



than $200,000 per year, or a married couple filing jointly, who
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earns more than $250,000 per year. (Current tax rate for them is
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23.8% which is also the highest tax rate)
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Tax Depreciation
i,- Is a gradual reduction in the value of your i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-



property that allows you to recover part of your cost or other
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basis in the form of a tax adjustment. You cant depreciate land,
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however you can depreciate structures and improvements,
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including rental property. The most common depreciation
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method is called the "Straight Line Method" where you divide the
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value of your house by "27.5" to get the allowable annual
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depreciation deduction. So, assuming you have a rental home i,- i,- i,- i,- i,- i,- i,- i,- i,-



valued at $150,000, your annual deduction for residential
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property would $5,454.54 which is the result of dividing $150,000
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by 27.5.
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