REAL ESTATE FINANCE I CHAMPIONS EXAM ACTUAL
QUESTIONS AND ANSWERS
The minimum downpayment on a VA loan is:
(a) 2% of the sales price
(b) 0% of the sales price
(c) 3.75% of the sales price
(d) 1% of the sales price - CORRECT ANSWER✅✅B
_________ is the process of creating a new mortgage loan.
(a) Origination
(b) Funding
(c) Underwriting
(d) Servicing
* - CORRECT ANSWER✅✅A
A veteran can have more than one VA loan:
(a) If the prior VA loan was paid in full and the property disposed of
,(b) The prior VA loan was assumed by an eligible veteran who substituted their entitlement
(c) A or B
(d) Under no circumstances - a VA loan is a "once in a lifetime" benefit
* - CORRECT ANSWER✅✅C
_________ are not-for-profit organizations that exist to serve their members.
(a) Mortgage companies
(b) Credit unions
(c) Insurance companies
(d) One that cannot be financed - CORRECT ANSWER✅✅B
A qualifying ratio that compares the borrower's proposed house payment to their gross monthly income
is the __________.
(a) Back ratio
(b) Appraisal ratio
(c) Front ratio
(d) Loan to value ratio - CORRECT ANSWER✅✅C
, Periodic payment amounts such as principal & interest, estimated escrow, estimated monthly payment,
and __________ must be disclosed in the Projected Payments section of the Loan Estimate form.
(a) Mortgage Insurance
(b) Homeowner's insurance
(c) Property value
(d) Estimated inspection cost - CORRECT ANSWER✅✅A
___________ relates to Federal Government spending.
(a) Monetary policy
(b) Legislative policy
(c) Reserve requirement
(d) Fiscal policy - CORRECT ANSWER✅✅D
In the Closing Disclosure, prepaids include homeowner's and mortgage insurance premiums, prepaid
interest, property taxes, and a maximum of __________ additional items.
(a) 13
(b) 3
(c) 7
QUESTIONS AND ANSWERS
The minimum downpayment on a VA loan is:
(a) 2% of the sales price
(b) 0% of the sales price
(c) 3.75% of the sales price
(d) 1% of the sales price - CORRECT ANSWER✅✅B
_________ is the process of creating a new mortgage loan.
(a) Origination
(b) Funding
(c) Underwriting
(d) Servicing
* - CORRECT ANSWER✅✅A
A veteran can have more than one VA loan:
(a) If the prior VA loan was paid in full and the property disposed of
,(b) The prior VA loan was assumed by an eligible veteran who substituted their entitlement
(c) A or B
(d) Under no circumstances - a VA loan is a "once in a lifetime" benefit
* - CORRECT ANSWER✅✅C
_________ are not-for-profit organizations that exist to serve their members.
(a) Mortgage companies
(b) Credit unions
(c) Insurance companies
(d) One that cannot be financed - CORRECT ANSWER✅✅B
A qualifying ratio that compares the borrower's proposed house payment to their gross monthly income
is the __________.
(a) Back ratio
(b) Appraisal ratio
(c) Front ratio
(d) Loan to value ratio - CORRECT ANSWER✅✅C
, Periodic payment amounts such as principal & interest, estimated escrow, estimated monthly payment,
and __________ must be disclosed in the Projected Payments section of the Loan Estimate form.
(a) Mortgage Insurance
(b) Homeowner's insurance
(c) Property value
(d) Estimated inspection cost - CORRECT ANSWER✅✅A
___________ relates to Federal Government spending.
(a) Monetary policy
(b) Legislative policy
(c) Reserve requirement
(d) Fiscal policy - CORRECT ANSWER✅✅D
In the Closing Disclosure, prepaids include homeowner's and mortgage insurance premiums, prepaid
interest, property taxes, and a maximum of __________ additional items.
(a) 13
(b) 3
(c) 7
