Real Estate Finance I-CHAMPIONS Exam Questions And
Answers Verified 100% Correct
An amortizing loan is:
(a) A loan whose payment includes both principal and interest
(b) A straight loan requiring interest only payments
(c) A wraparound loan
(d) A loan that includes both real and personal property - ANSWER A
Escrow of taxes and insurance is required for FHA loans:
(a) With a LTV of 90% or greater
(b) Made to borrowers with a credit score under 600
(c) Always - all FHA loans require escrow of taxes and insurance
(d) Unless the borrower agrees to pay an escrow waiver fee - ANSWER C
A claim, lien, charge, or liability attached to and binding real property is a(n)
__________.
(a) Clause
(b) Easement
(c) Encumbrance
(d) Conveyance - ANSWER C
FHA requires a down payment of:
(a) 0%
(b) 3.50%
(c) 5%
,(d) 5.50% - ANSWER B
The _________ is the central banking system of the United States.
(a) Federal Deposit Insurance Company
(b) The U.S. Treasury
(c) The U.S. Mint
(d) The Federal Reserve - ANSWER D
The three major national credit reporting agencies are, Experian, Equifax and
_________.
(a) TransAtlantic
(b) Union Pacific
(c) Transtar
(d) TransUnion - ANSWER D
Because it is a gift, the lender and/or the agent can provide gift funds to the borrower to
be used as a down payment on an FHA loan.
(a) True
(b) False - ANSWER B
The two major purchasers of mortgages in the secondary market are:
(a) Freddie Mac and Ginnie Mae
(b) Fannie Mae and Freddie Mac
(c) Ginne Mae and Fannie Mae
(d) FHFA and HECM - ANSWER B
If a borrower is in default, the mortgage servicer may start the _________ process.
(a) Forestalling
, (b) Closing
(c) Casting
(d) Foreclosure - ANSWER D
A collateral-dependent loan is also known as a __________.
(a) Title loan
(b) Cash advance
(c) Hard money loan
(d) Payment option loan - ANSWER C
Lenders bear less risk in making an FHA loan because the FHA:
(a) Borrowers generally have higher than average income and credit
(b) Requires a substantial down payment that minimizes risk
(c) Is default insurance that will pay a claim to a lender in the event of default
(d) Requires that the borrower have a higher credit score than other programs -
ANSWER C
While some expenses may be paid in the form of a seller contribution or other means,
the borrower actually must have the funds on hand for the:
(a) Downpayment
(b) Appraisal fee
(c) Points
(d) Brokerage fee - ANSWER A
FHA loans are available for:
(a) Single family homes
(b) Multifamily properties
Answers Verified 100% Correct
An amortizing loan is:
(a) A loan whose payment includes both principal and interest
(b) A straight loan requiring interest only payments
(c) A wraparound loan
(d) A loan that includes both real and personal property - ANSWER A
Escrow of taxes and insurance is required for FHA loans:
(a) With a LTV of 90% or greater
(b) Made to borrowers with a credit score under 600
(c) Always - all FHA loans require escrow of taxes and insurance
(d) Unless the borrower agrees to pay an escrow waiver fee - ANSWER C
A claim, lien, charge, or liability attached to and binding real property is a(n)
__________.
(a) Clause
(b) Easement
(c) Encumbrance
(d) Conveyance - ANSWER C
FHA requires a down payment of:
(a) 0%
(b) 3.50%
(c) 5%
,(d) 5.50% - ANSWER B
The _________ is the central banking system of the United States.
(a) Federal Deposit Insurance Company
(b) The U.S. Treasury
(c) The U.S. Mint
(d) The Federal Reserve - ANSWER D
The three major national credit reporting agencies are, Experian, Equifax and
_________.
(a) TransAtlantic
(b) Union Pacific
(c) Transtar
(d) TransUnion - ANSWER D
Because it is a gift, the lender and/or the agent can provide gift funds to the borrower to
be used as a down payment on an FHA loan.
(a) True
(b) False - ANSWER B
The two major purchasers of mortgages in the secondary market are:
(a) Freddie Mac and Ginnie Mae
(b) Fannie Mae and Freddie Mac
(c) Ginne Mae and Fannie Mae
(d) FHFA and HECM - ANSWER B
If a borrower is in default, the mortgage servicer may start the _________ process.
(a) Forestalling
, (b) Closing
(c) Casting
(d) Foreclosure - ANSWER D
A collateral-dependent loan is also known as a __________.
(a) Title loan
(b) Cash advance
(c) Hard money loan
(d) Payment option loan - ANSWER C
Lenders bear less risk in making an FHA loan because the FHA:
(a) Borrowers generally have higher than average income and credit
(b) Requires a substantial down payment that minimizes risk
(c) Is default insurance that will pay a claim to a lender in the event of default
(d) Requires that the borrower have a higher credit score than other programs -
ANSWER C
While some expenses may be paid in the form of a seller contribution or other means,
the borrower actually must have the funds on hand for the:
(a) Downpayment
(b) Appraisal fee
(c) Points
(d) Brokerage fee - ANSWER A
FHA loans are available for:
(a) Single family homes
(b) Multifamily properties
