F8: Loan Types, Terms and Issues in TX

Which type of loan follows the Fannie Mae and Freddie Mac guidelines?

• conforming loan

• non-conforming loan

• government loans

• Split loan

Which of the following is NOT a government loan?

• provided by USDA

• guaranteed by VA

• insured by FHA

• conforms to Fannie Mae

Which of the following is NOT a common form of buyer financing?

• fixed-rate; 30-year term

• principal payments start smaller and increase over time (GEM)

• interest is periodically renegotiated (RRM)

• receives monthly payments in exchange for ownership of the property

Which of the following is NOT a form of creative buyer financing?

• Purchase Money Mortgage

• Wrap-around loans

• Construction loan

• Growing Equity Mortgage

This type of loan is a junior financing instrument allows the seller to maintain their existing mortgage while the buyer's mortgage covers the existing amount owed

• home equity loan

• conventional loan

• wrap-around loan

• reverse annuity mortgage

With this type of loan, a borrower receives monthly payments or a lump-sum payment in exchange for ownership of the property. Typically used by elderly.

• home equity loan

• home equity line of credit

• reverse annuity mortgage

• wrap-around loan

A private mortgage insurance is required on conventional loans where the loan-to-value ratio is in excess of what percentage?

• 70%

• 80%

• 90%

• 85%

Which of the following is NOT mortgage fraud?

• illegal property flipping

• false state income fraud

• subprime lending

• cash-out purchases

This was one of the causes of the financial crisis in 2007. It targeted less credit-worthy borrowers.

• subprime lending

• private mortgage insurance

• buyer financing schemes

• foreclosure rescue schemes

Which of the following is not a form of a participation agreements?

• REIT

• REMT

• PITI

• REMIC