Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
The Veterans Administration _______ home loans to eligible recipients.
Guarantees. It does not make its own loans.
2.
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.
3.
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.
4.
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.
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.