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1.
If you decide to take out a private home loan from a family member, there is never any need to draw up formal contracts for it.
False. Even family loans benefit from contracts. Contracts protect both parties from adverse circumstances.
2.
One advantage of having a home loan guaranteed by the Veterans Administration or Federal Housing Administration is that the down payment may be waived or reduced.
True. This is an advantage of these guarantees.
3.
What is the lifetime limit that you may borrow from an individual retirement account (IRA) for a down payment on your first home?
The lifetime limit is $10,000. Loans from an IRA must be used within 120 days of receiving it.
4.
In home-buying terms, "seller financing" means _______.
The seller of a home finances the mortgage loan on that home. Seller financing refers to the seller giving credit to a buyer, who then pays for the home via a mortgage loan.
5.
Because they are intended to help new homeowners, first-time homebuyer programs do not have restrictions on who can qualify for them.
False. Even these programs seek to protect themselves from risk. They set out several requirements of those who apply.