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Basics Intermediate:
How to Finance a Home
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1.
Because they are intended to help new homeowners, first-time homebuyer programs do not have restrictions on who can qualify for them.
Choose wisely. There is only one correct answer.
True
False
False. Even these programs seek to protect themselves from risk. They set out several requirements of those who apply.
2.
What is the lifetime limit that you may borrow from an individual retirement account (IRA) for a down payment on your first home?
Choose wisely. There is only one correct answer.
You may borrow $10,000 per year with no lifetime limit
$20,000 is the lifetime limit
The lifetime limit is $10,000
The lifetime limit is $10,000. Loans from an IRA must be used within 120 days of receiving it.
3.
One advantage of seller financing for a home is that the interest rate can be negotiated.
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True
False
True. The interest rate as well as other features can be negotiated between the two parties.
4.
Government loans for home-buyers are available at which levels of government?
Choose wisely. There is only one correct answer.
Federal
State
City
All of the above
All of the above. Government loans are available at all levels, though not in every city.
5.
In order for you to handle a private mortgage as a bank would, what documents must be prepared?
Choose wisely. There is only one correct answer.
A letter of intent, a mortgage, and repayment schedule
A promissory note and a mortgage or "deed of trust"
A promissory note, a deed of trust, and a repayment schedule
A promissory note and a mortgage or "deed of trust". A repayment schedule is not required, but is certainly a good idea.
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