Basics Intermediate: How to Finance a Home

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1.
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.
2.
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.
3.
If your employer's 401(k) plan allows for loans, the maximum loan amount for all employees will be $50,000.
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False. The maximum loan amount set by law is the lesser of one-half of your vested balance in the plan or $50,000.
4.
One advantage of seller financing for a home is that the interest rate can be negotiated.
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True. The interest rate as well as other features can be negotiated between the two parties.
5.
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.