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.
Government loans for home-buyers are available at which levels of government?
Choose wisely. There is only one correct answer.
All of the above. Government loans are available at all levels, though not in every city.
2.
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.
3.
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.
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.
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.