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1.
One advantage of having a home loan guaranteed by the Veterans Administration or Federal Housing Administration is that the down payment may be waived or reduced.
Choose wisely. There is only one correct answer.
True. This is an advantage of these guarantees.
2.
In home-buying terms, "seller financing" means _______.
Choose wisely. There is only one correct answer.
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.
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.
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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.
If your employer's 401(k) plan allows for loans, the maximum loan amount for all employees will be $50,000.
Choose wisely. There is only one correct answer.
False. The maximum loan amount set by law is the lesser of one-half of your vested balance in the plan or $50,000.
5.
Because they are intended to help new homeowners, first-time homebuyer programs do not have restrictions on who can qualify for them.
Choose wisely. There is only one correct answer.
False. Even these programs seek to protect themselves from risk. They set out several requirements of those who apply.