Basics Intermediate: How to Finance a Home

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1.
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.
2.
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.
3.
In order for you to handle a private mortgage as a bank would, what documents must be prepared?
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A promissory note and a mortgage or "deed of trust". A repayment schedule is not required, but is certainly a good idea.
4.
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.
5.
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.