Basics Intermediate: How to Finance a Home

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1.
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.
2.
Wealthy first-time homebuyers might be ineligible for first-time homebuyer programs.
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True. Many such programs require that you earn less than a certain amount of money.
3.
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.
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.
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.