FHA & HECM Reverse Mortgages Pr a ct i ce Tes t
E xam 2026 AC TUA L CO MPLE TE REAL
T EST I NG EX AM QUE ST IO NS A ND V ER IFI ED
A NS WERS ( MU LTIPLE CH OI CE S) ||A+
GRAD ED |1 00% CORR EC T! ! 2026 -2027
LAT EST VE RSI ON! !
FHA checks student loans through the "Credit Alert Verification
Reporting System" CAIVRS
to determine whether a borrower has ever failed to repay their
federal debts or obligations.
FHA Gift Funds
can be either from a relative or an employer and a gift letter must
be signed
FHA Upfront Mortgage Insurance Premiums
The current "UFMIP" Up Front MIP is 1.75%
,FHA has a maximum loan amount. FHA is required by the National
Housing Act as amended by the Housing and Economic Recovery
Act to set single family forward loan @
115% of median house prices subject to a floor and a ceiling on the
limits
FHA streamlines
are utilized by borrowers with current FHA mortgages when
they would like to reduce their mortgage insurance, interest
rate and payment
FHA Reverse Mortgages are called what?
HECM's Home Equity Conversion Mortgage .
,HECM Mortgage Basics
1. Borrower must be 62
2. Have a principal residence that is paid off or
3. Have a low mortgage balance that can be paid off at
settlement with the proceeds from the reverse loan
4. Mandatory counseling is required to apply
5. Negative Amortization
6. No escrows for taxes and insurance
If an HECM borrower dies there are a few options
1. The borrower's estate / heirs may sell the home to pay off the
reverse mortgage
2. The borrower's estate of the estate may keep the property
once the reverse mortgage is paid
3. The borrower's estate / heirs may surrender the property to
the lender of the reverse mortgage.
, How long does and estate of HECM borrower have to decide
what to do with the property?
1 year
What properties are eligible for a FHA HECM Reverse Mortgage?
1. Single Family Home
2. 2 to 4 unit home with on unit occupied by the borrower
3. HUD approved condominium project
4. Manufactured home that meets the FHA requirements
E xam 2026 AC TUA L CO MPLE TE REAL
T EST I NG EX AM QUE ST IO NS A ND V ER IFI ED
A NS WERS ( MU LTIPLE CH OI CE S) ||A+
GRAD ED |1 00% CORR EC T! ! 2026 -2027
LAT EST VE RSI ON! !
FHA checks student loans through the "Credit Alert Verification
Reporting System" CAIVRS
to determine whether a borrower has ever failed to repay their
federal debts or obligations.
FHA Gift Funds
can be either from a relative or an employer and a gift letter must
be signed
FHA Upfront Mortgage Insurance Premiums
The current "UFMIP" Up Front MIP is 1.75%
,FHA has a maximum loan amount. FHA is required by the National
Housing Act as amended by the Housing and Economic Recovery
Act to set single family forward loan @
115% of median house prices subject to a floor and a ceiling on the
limits
FHA streamlines
are utilized by borrowers with current FHA mortgages when
they would like to reduce their mortgage insurance, interest
rate and payment
FHA Reverse Mortgages are called what?
HECM's Home Equity Conversion Mortgage .
,HECM Mortgage Basics
1. Borrower must be 62
2. Have a principal residence that is paid off or
3. Have a low mortgage balance that can be paid off at
settlement with the proceeds from the reverse loan
4. Mandatory counseling is required to apply
5. Negative Amortization
6. No escrows for taxes and insurance
If an HECM borrower dies there are a few options
1. The borrower's estate / heirs may sell the home to pay off the
reverse mortgage
2. The borrower's estate of the estate may keep the property
once the reverse mortgage is paid
3. The borrower's estate / heirs may surrender the property to
the lender of the reverse mortgage.
, How long does and estate of HECM borrower have to decide
what to do with the property?
1 year
What properties are eligible for a FHA HECM Reverse Mortgage?
1. Single Family Home
2. 2 to 4 unit home with on unit occupied by the borrower
3. HUD approved condominium project
4. Manufactured home that meets the FHA requirements
