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1.
In order for you to handle a private mortgage as a bank would, what documents must be prepared?
A promissory note and a mortgage or "deed of trust". A repayment schedule is not required, but is certainly a good idea.
2.
What is the lifetime limit that you may borrow from an individual retirement account (IRA) for a down payment on your first home?
The lifetime limit is $10,000. Loans from an IRA must be used within 120 days of receiving it.
3.
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.
4.
The Veterans Administration _______ home loans to eligible recipients.
Guarantees. It does not make its own loans.
5.
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.