ACEABLE AGENT PRINCIPLES OF REAL
ESTATE II 2026 STUDY GUIDE QUESTION
BANK AND SOLUTIONS MASTER REVISION
PACK
◉ BALLOON PAYMENT LOAN
Answer: -a mortgage or deed of trust loan employs periodic
payments that will not fully amortize the amount of the loan by the
time the final payment is due
-the final payment is larger than others
-partially amortized loan
◉ STRAIGHT AMORTIZED LOAN
Answer: -the amount applied to the principal remains the same
while the amount paid to interest changes from month to month
◉ FIXED RATE AMORTIZED LOAN
Answer: -the interest rate and the monthly payments remain the
same for the life of the loan
-"direct reduction loans"
-constant payments of principal and interest throughout the life of
the loan
,-with each successive payment the percentage applied towards the
principal grows the monthly interest that is due, declines
◉ INTEREST ONLY LOAN
Answer: -one type of balloon payment
-also known as "straight loan" or "term loan"
-periodic payments of interest
-generally used for home improvement loans, second mortgages, and
investor loans rather than for residential first mortgages
-if borrowers expected strong appreciation of the property over the
short term they planned to own
◉ P+I = MORTGAGE RATE X LOAN AMT/1000
Answer: What is the formula to find P+I loan payments?
◉ CONVENTIONAL LOAN
Answer: Type of loan not underwritten by any agency of the federal
government?
◉ GOVERNMENT-BACKED LOAN
Answer: Type of loan that is insured guaranteed or provided by a
government agency?
,◉ LTV
Answer: Loan to Value Ratio: Ratio of debt to value of the property?
◉ NONCONFORMING LOAN
Answer: Type of loan that does not meet Fannie Mae/ Freddie Mac
guidelines?
◉ Federal Housing Administration (FHA)
Answer: Who is the largest insurer of mortgages in the world since
1934?
◉ FHA LOANS
Answer: -Mutual Mortgage Insurance is paid monthly until the
remaining loan balance has an 80% LTV ratio or less
-an upfront Mortgage Insurance Premium (MIP) must be paid by the
borrower
-property must meet HUD's minimum property standards
◉ VA LOANS
Answer: -typically no down payment
-no limit on amount of loan
-certificate of eligibility is required
-eligible veterans and spouse
, -first 25% of loan is guaranteed
◉ NON-CONFORMING CONVENTIONAL
Answer: -loans may exceed conforming loan limit or buyers may lack
credit
-lenders can sell to private mortgage packagers
-do not meet Fannie Mae guidelines
◉ CONFORMING CONVENTIONAL
Answer: -meet Fannie Mae guidelines
-can be sold in secondary market
◉ TEXAS BOOTSTRAP LOANS
Answer: -all borrowers are required to pay at least 65% of the labor
to build
-owners/builders
-construction supervised by state certified NOHP (Non-Profit
Owner/Builder Housing Provider)
-may not exceed $45k
◉ MY FIRST TEXAS HOME LOAN
Answer: -provides up to 5% down payment/closing
ESTATE II 2026 STUDY GUIDE QUESTION
BANK AND SOLUTIONS MASTER REVISION
PACK
◉ BALLOON PAYMENT LOAN
Answer: -a mortgage or deed of trust loan employs periodic
payments that will not fully amortize the amount of the loan by the
time the final payment is due
-the final payment is larger than others
-partially amortized loan
◉ STRAIGHT AMORTIZED LOAN
Answer: -the amount applied to the principal remains the same
while the amount paid to interest changes from month to month
◉ FIXED RATE AMORTIZED LOAN
Answer: -the interest rate and the monthly payments remain the
same for the life of the loan
-"direct reduction loans"
-constant payments of principal and interest throughout the life of
the loan
,-with each successive payment the percentage applied towards the
principal grows the monthly interest that is due, declines
◉ INTEREST ONLY LOAN
Answer: -one type of balloon payment
-also known as "straight loan" or "term loan"
-periodic payments of interest
-generally used for home improvement loans, second mortgages, and
investor loans rather than for residential first mortgages
-if borrowers expected strong appreciation of the property over the
short term they planned to own
◉ P+I = MORTGAGE RATE X LOAN AMT/1000
Answer: What is the formula to find P+I loan payments?
◉ CONVENTIONAL LOAN
Answer: Type of loan not underwritten by any agency of the federal
government?
◉ GOVERNMENT-BACKED LOAN
Answer: Type of loan that is insured guaranteed or provided by a
government agency?
,◉ LTV
Answer: Loan to Value Ratio: Ratio of debt to value of the property?
◉ NONCONFORMING LOAN
Answer: Type of loan that does not meet Fannie Mae/ Freddie Mac
guidelines?
◉ Federal Housing Administration (FHA)
Answer: Who is the largest insurer of mortgages in the world since
1934?
◉ FHA LOANS
Answer: -Mutual Mortgage Insurance is paid monthly until the
remaining loan balance has an 80% LTV ratio or less
-an upfront Mortgage Insurance Premium (MIP) must be paid by the
borrower
-property must meet HUD's minimum property standards
◉ VA LOANS
Answer: -typically no down payment
-no limit on amount of loan
-certificate of eligibility is required
-eligible veterans and spouse
, -first 25% of loan is guaranteed
◉ NON-CONFORMING CONVENTIONAL
Answer: -loans may exceed conforming loan limit or buyers may lack
credit
-lenders can sell to private mortgage packagers
-do not meet Fannie Mae guidelines
◉ CONFORMING CONVENTIONAL
Answer: -meet Fannie Mae guidelines
-can be sold in secondary market
◉ TEXAS BOOTSTRAP LOANS
Answer: -all borrowers are required to pay at least 65% of the labor
to build
-owners/builders
-construction supervised by state certified NOHP (Non-Profit
Owner/Builder Housing Provider)
-may not exceed $45k
◉ MY FIRST TEXAS HOME LOAN
Answer: -provides up to 5% down payment/closing
