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1.
The Veterans Administration _______ home loans to eligible recipients.
Guarantees. It does not make its own loans.
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.
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.
If your employer's 401(k) plan allows for loans, the maximum loan amount for all employees will be $50,000.
False. The maximum loan amount set by law is the lesser of one-half of your vested balance in the plan or $50,000.
4.
Wealthy first-time homebuyers might be ineligible for first-time homebuyer programs.
True. Many such programs require that you earn less than a certain amount of money.
5.
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.