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1.
If your employer's 401(k) plan allows for loans, the maximum loan amount for all employees will be $50,000.
Choose wisely. There is only one correct answer.
False. The maximum loan amount set by law is the lesser of one-half of your vested balance in the plan or $50,000.
2.
In home-buying terms, "seller financing" means _______.
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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.
3.
The Veterans Administration _______ home loans to eligible recipients.
Choose wisely. There is only one correct answer.
Guarantees. It does not make its own loans.
4.
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.
Choose wisely. There is only one correct answer.
False. Even family loans benefit from contracts. Contracts protect both parties from adverse circumstances.
5.
First-time homebuyers need not worry about having a bad credit score in order to benefit from a first-time homebuyer program.
Choose wisely. There is only one correct answer.
False. A common requirement is that you keep a good credit score. The purpose of this is to ensure that you are not too much of a risk to the lender.