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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.
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.
3.
The Veterans Administration _______ home loans to eligible recipients.
Guarantees. It does not make its own loans.
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.
False. Even family loans benefit from contracts. Contracts protect both parties from adverse circumstances.
5.
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.