CA Real Estate Finance Course Exam - Questions With
Complete Solutions
Annual MIP can be removed from an FHA loan by _____. Right Ans -
Refinancing to a conventional loan
What's an example of an inquiry a consumer initiated that may appear on a
credit score? Right Ans - Application for a loan
What is one of the qualifying standards for a VA-guaranteed loan? Right
Ans - must have a certificate of eligibility
A buyer is purchasing a ppt for $500k. His down pymnt of $50k and is
financing the rest. What's the amount of the loan origination fee if the lender
charges one-and-a-half points? Right Ans - $6750
The fewer ppts on the market, the greater the scarcity. What's the effect on
prices? Right Ans - Prices are pushed upward.
A loan with borrow options that can be long term with periodic adjustments
or short term with more frequent adjustments to the rate is a(n) ___ mortgage.
Right Ans - renegotiable rate
what type of value may consumers be interested in if they are looking for the
potential rate of return? Right Ans - investment value
What describes a Housing Choice Vouchers? Right Ans - A program to help
very low-income families, the elderly, and disabled individuals to afford
decent, safe, and sanitary housing in the private market.
Lucy is a mortgage banker. Her business is regulated by ____. Right Ans - CA
Residential Mortgage Lending Act
What is a wrap-around mortgage? Right Ans - One that may involve seller
financing
, A loan made from a homeowner's equity where funds are drawn over time
and the bank gains corresponding ppt ownership is called a ______. Right
Ans - Reverse annuity mortgage
Which entity generally acts in the secondary market? Right Ans - Fannie
Mae
Your clients, the Nguyens, have signed a contract for deed to purchase a ppt.
What rights do the Nguyens receive? Right Ans - Equitable title and
possession of the ppt
Why are self-employed individuals required to pay estimated income taxes?
Right Ans - They don't have taxes removed from a paycheck
What's true about buydowns with a VA loan? Right Ans - They're allowed
only on fixed rate loans
In '08, as a response to the '07 financial crisis, the Federal Housing Finance
Agency began acting as conservator over which institutions? Right Ans -
Fannie and Freddie Mac
What's a reason a seller might consider selling his ppt through an installment
plan instead of a traditional sale? Right Ans - The seller may pay less in
capital gains taxes if he receives the proceeds from the sale over time rather
than in a lump sum.
Sissy is a veteran who used her full entitlement to purchase a home. The loan
has since been paid off, and Sissy still owns the home. Now, she'd like to buy a
second home using another VA loan. Is Sissy allowed to do this? Right Ans -
Yes, Sissy can apply to have her entitlement restored and can buy a second
house using a VA loan.
Store of value, unit of account, and what other factor define money? Right
Ans - Medium of exchange
What falls under the definition of 'dwelling' according to Senate Bill 36?
Right Ans - A mobile home
Complete Solutions
Annual MIP can be removed from an FHA loan by _____. Right Ans -
Refinancing to a conventional loan
What's an example of an inquiry a consumer initiated that may appear on a
credit score? Right Ans - Application for a loan
What is one of the qualifying standards for a VA-guaranteed loan? Right
Ans - must have a certificate of eligibility
A buyer is purchasing a ppt for $500k. His down pymnt of $50k and is
financing the rest. What's the amount of the loan origination fee if the lender
charges one-and-a-half points? Right Ans - $6750
The fewer ppts on the market, the greater the scarcity. What's the effect on
prices? Right Ans - Prices are pushed upward.
A loan with borrow options that can be long term with periodic adjustments
or short term with more frequent adjustments to the rate is a(n) ___ mortgage.
Right Ans - renegotiable rate
what type of value may consumers be interested in if they are looking for the
potential rate of return? Right Ans - investment value
What describes a Housing Choice Vouchers? Right Ans - A program to help
very low-income families, the elderly, and disabled individuals to afford
decent, safe, and sanitary housing in the private market.
Lucy is a mortgage banker. Her business is regulated by ____. Right Ans - CA
Residential Mortgage Lending Act
What is a wrap-around mortgage? Right Ans - One that may involve seller
financing
, A loan made from a homeowner's equity where funds are drawn over time
and the bank gains corresponding ppt ownership is called a ______. Right
Ans - Reverse annuity mortgage
Which entity generally acts in the secondary market? Right Ans - Fannie
Mae
Your clients, the Nguyens, have signed a contract for deed to purchase a ppt.
What rights do the Nguyens receive? Right Ans - Equitable title and
possession of the ppt
Why are self-employed individuals required to pay estimated income taxes?
Right Ans - They don't have taxes removed from a paycheck
What's true about buydowns with a VA loan? Right Ans - They're allowed
only on fixed rate loans
In '08, as a response to the '07 financial crisis, the Federal Housing Finance
Agency began acting as conservator over which institutions? Right Ans -
Fannie and Freddie Mac
What's a reason a seller might consider selling his ppt through an installment
plan instead of a traditional sale? Right Ans - The seller may pay less in
capital gains taxes if he receives the proceeds from the sale over time rather
than in a lump sum.
Sissy is a veteran who used her full entitlement to purchase a home. The loan
has since been paid off, and Sissy still owns the home. Now, she'd like to buy a
second home using another VA loan. Is Sissy allowed to do this? Right Ans -
Yes, Sissy can apply to have her entitlement restored and can buy a second
house using a VA loan.
Store of value, unit of account, and what other factor define money? Right
Ans - Medium of exchange
What falls under the definition of 'dwelling' according to Senate Bill 36?
Right Ans - A mobile home
