Home > Basics > Intermediate
Basics Intermediate: How to Finance a Home

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
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 a private home loan, when a "deed of trust" and promissory note are executed, your private lender can foreclose if you default on the loan.
Choose wisely. There is only one correct answer.
True. Although few private lenders would go so far, your lender holds a lien on your property and has the same rights as a bank.
3.
Wealthy first-time homebuyers might be ineligible for first-time homebuyer programs.
Choose wisely. There is only one correct answer.
True. Many such programs require that you earn less than a certain amount of money.
4.
One advantage of seller financing for a home is that the interest rate can be negotiated.
Choose wisely. There is only one correct answer.
True. The interest rate as well as other features can be negotiated between the two parties.
5.
The Veterans Administration _______ home loans to eligible recipients.
Choose wisely. There is only one correct answer.
Guarantees. It does not make its own loans.