Basics Intermediate: How to Finance a Home

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1.
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.
2.
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?
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Land contract. In a land contract, the buyer has equitable title, but not full title.
3.
Because they are intended to help new homeowners, first-time homebuyer programs do not have restrictions on who can qualify for them.
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False. Even these programs seek to protect themselves from risk. They set out several requirements of those who apply.
4.
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.
5.
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.