REAL ESTATE FINANCE: PRE-LICENSE
FINAL EXAM QUESTIONS AND
ANSWERS 100% PASS 2026 EDITION
a. - ANS Fannie Mae does not purchase:
a. Chattel mortgages
b. FHA loans
c. Conventional loans
d. VA loans
c. - ANS An owner has property which gives him a gross income of $1,625/month. His
monthly expenses average $507/month. What is his net income per year on the property?
a. $6,084
b. $8,711
c. $13,416
d. $19,500
b. - ANS The clause in a mortgage, contract, or trust deed which allows the lender to call the
entire unpaid balance upon default is called the:
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@2026 EDITION ALLRIGHTS RESERVED
,a. Balloon payment clause
b. Acceleration clause
c. Cancellation clause
d. Defeasance clause
c. - ANS A tenant signed a percentage lease with a landlord. After reaching an agreed break-
even threshold, the tenant is required to pay the landlord an additional 5% of the gross income
above the agreed amount. If the tenant made an additional $22,000, how much additional rent
is due?
a. $1,250
b. $11,000
c. $1,100
d. $10,000
c. - ANS If the tax paid on real property by an owner was $1,304 after taking advantage of the
3% discount privilege, what were the true taxes billed against the property?
a. $1,321
b. $1,760
c. $1,344
d. $2,178
c. - ANS The loan-to-value ratio on a mortgage is the:
a. Mortgage loan as a percentage of insured value
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@2026 EDITION ALLRIGHTS RESERVED
,b. Monthly payments as a percentage of the remaining balance of the loan
c. Loan as a percentage of the sales price or appraised value
d. None of the above
d. - ANS The Federal Reserve Board can control the flow of money by:
a. Raising the discount rate to member borrowers
b. Increasing the reserve requirement of its members banks
c. Selling Bonds
d. All of the above
b. - ANS Funds for conventional loans are received directly from:
a. Government National Mortgage Association
b. Private parties and non-government institutions
c. The Federal National Mortgage Association
d. All of the above
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@2026 EDITION ALLRIGHTS RESERVED
, a. - ANS The Truth-in-Lending Law (Regulation Z), a portion of the Federal Consumer
Protection Act, became effective July 1996. Regulation Z applies to real estate loans for:
a. Personal, family households
b. Agriculture purposes
c. Business purposes
d. Both A and B
c. - ANS A property sold for $293,000; the buyer paid $11,000 earnest money payment. The
buyer obtained a loan for the balance. The mortgage lender charged a fee of 1 1/2% of the loan.
What was the total cash used by the buyer for this transaction?
a. $14,165
b. $14,820
c. $15,230
d. $15,395
a. - ANS The mortgagor's right to reestablish ownership after default is known as:
a. Redemption
b. Reestablishment
c. Acceleration
d. Subordination
a. - ANS To secure a loan guaranteed by the federal Veterans Affairs:
I. The veteran must sign a document that he intends to live on the premises.
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@2026 EDITION ALLRIGHTS RESERVED
FINAL EXAM QUESTIONS AND
ANSWERS 100% PASS 2026 EDITION
a. - ANS Fannie Mae does not purchase:
a. Chattel mortgages
b. FHA loans
c. Conventional loans
d. VA loans
c. - ANS An owner has property which gives him a gross income of $1,625/month. His
monthly expenses average $507/month. What is his net income per year on the property?
a. $6,084
b. $8,711
c. $13,416
d. $19,500
b. - ANS The clause in a mortgage, contract, or trust deed which allows the lender to call the
entire unpaid balance upon default is called the:
1
@2026 EDITION ALLRIGHTS RESERVED
,a. Balloon payment clause
b. Acceleration clause
c. Cancellation clause
d. Defeasance clause
c. - ANS A tenant signed a percentage lease with a landlord. After reaching an agreed break-
even threshold, the tenant is required to pay the landlord an additional 5% of the gross income
above the agreed amount. If the tenant made an additional $22,000, how much additional rent
is due?
a. $1,250
b. $11,000
c. $1,100
d. $10,000
c. - ANS If the tax paid on real property by an owner was $1,304 after taking advantage of the
3% discount privilege, what were the true taxes billed against the property?
a. $1,321
b. $1,760
c. $1,344
d. $2,178
c. - ANS The loan-to-value ratio on a mortgage is the:
a. Mortgage loan as a percentage of insured value
2
@2026 EDITION ALLRIGHTS RESERVED
,b. Monthly payments as a percentage of the remaining balance of the loan
c. Loan as a percentage of the sales price or appraised value
d. None of the above
d. - ANS The Federal Reserve Board can control the flow of money by:
a. Raising the discount rate to member borrowers
b. Increasing the reserve requirement of its members banks
c. Selling Bonds
d. All of the above
b. - ANS Funds for conventional loans are received directly from:
a. Government National Mortgage Association
b. Private parties and non-government institutions
c. The Federal National Mortgage Association
d. All of the above
3
@2026 EDITION ALLRIGHTS RESERVED
, a. - ANS The Truth-in-Lending Law (Regulation Z), a portion of the Federal Consumer
Protection Act, became effective July 1996. Regulation Z applies to real estate loans for:
a. Personal, family households
b. Agriculture purposes
c. Business purposes
d. Both A and B
c. - ANS A property sold for $293,000; the buyer paid $11,000 earnest money payment. The
buyer obtained a loan for the balance. The mortgage lender charged a fee of 1 1/2% of the loan.
What was the total cash used by the buyer for this transaction?
a. $14,165
b. $14,820
c. $15,230
d. $15,395
a. - ANS The mortgagor's right to reestablish ownership after default is known as:
a. Redemption
b. Reestablishment
c. Acceleration
d. Subordination
a. - ANS To secure a loan guaranteed by the federal Veterans Affairs:
I. The veteran must sign a document that he intends to live on the premises.
4
@2026 EDITION ALLRIGHTS RESERVED
