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Basics Intermediate: How to Finance a Home

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1.
If you take out a loan from your employer's 401(k) plan, who sets the loan fees for it?
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Your employer. Your employer sets this condition, along with certain others.
2.
First-time homebuyers need not worry about having a bad credit score in order to benefit from a first-time homebuyer program.
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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.
Government loans for home-buyers are available at which levels of government?
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All of the above. Government loans are available at all levels, though not in every city.
4.
If you decide to take out a private home loan from a family member, there is never any need to draw up formal contracts for it.
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False. Even family loans benefit from contracts. Contracts protect both parties from adverse circumstances.
5.
One advantage of seller financing for a home is that the interest rate can be negotiated.
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True. The interest rate as well as other features can be negotiated between the two parties.