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.
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.
First-time homebuyers need not worry about having a bad credit score in order to benefit from a first-time homebuyer program.
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.
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.
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.
Which form of seller financing refers to a buyer making payments on a home and then receiving title to the home only when the home is finally paid off?
Land contract. In a land contract, the buyer has equitable title, but not full title.
5.
The Veterans Administration _______ home loans to eligible recipients.