Texas Real estate Questions Flashcards

Texas Real estate Questions Flashcards USDA Rural Development Guaranteed Housing Loans are

usually referred to as:

USDA loans

Negative amortization is the addition of: unpaid interest and the loan balance

Fannie Mae and Freddie Mac attracted controversy in the

2000s. They pursued aggressive strategies to purchase:

mortgages and mortgage assets under questionable standards*Fannie Mae and Freddie Mac's accounting practices sparked controversy. They pursued aggressive strategies to purchase mortgages and mortgage assets, purchased private-label MBS collateralized by subprime mortgages, and used questionable underwriting standards.The HUD Closing Disclosure includes which of the following?closing costs Agents can specialize in things such as: clients, property types, or services provided Which of the following are Government-Sponsored Enterprises (GSEs)?Fannie Mae, Freddie Mac, and the FHLBank System*Fannie Mae, Freddie Mac, and the FHLBank System are all Government-Sponsored Enterprises (GSEs). But because Ginnie Mae is a wholly-owned corporation within the Department of Housing and Urban Development (HUD) it is NOT a "sponsored" enterprise.VA loans can be used for HOW MUCH of the purchase price?100%VA-guaranteed loans help veterans finance a home purchase with little or no down payment. This means VA loans can be used for 100% of the purchase price.

A conventional loan is:NOT underwritten by any agency of the federal government

A fixed-rate amortized loan payment plan features

payments of principal and interest that:

are constant throughout the life of the loan Jennifer wants to revoke her contract and receive a refund of any monies paid to date. It has been nine days since the

signing of the contract. Jennifer:

cannot revoke her contract because the "cooling off period" is seven days after the signing of the contract.A mortgage insurance premium (MIP) must be paid: by the borrower when obtaining an FHA-insured loan*An upfront mortgage insurance premium (MIP) must be paid upfront by the borrower when obtaining an FHA-insured loan. It promises to repay the balance of the loan in full if the borrower defaults.Regulation Z requires all consumers seeking credit receive

a:

disclosure statement A seller seeking a seller-financed loan should execute a

promissory note addressing details such as:

interest rate Which government organization enforces CERLA? Environmental Protection Agency (EPA) Nonjudicial foreclosure means a lender has the right to

foreclose and sell a property without court approval if a:

borrower defaults on a mortgage loan Investment specialization often involves: being comfortable making multiple offers on multiple properties

A property is sold for $899,999. The buyer has paid $17,000 as earnest money and is obtaining a 65% loan.Based on the information provided, how much additional cash will the buyer have to bring to the closing day?$298,000The buyer will need to bring an additional $298,000 to the closing. First, determine the loan amount of 65% of the purchase price using the formula for solving

for part: Total x Percentage = Part. Plug the numbers in to

solve for the loan amount: $899,999 x 0.65 = $584,999.

Then, subtract the earnest money and the loan amount from the purchase price. $899,999 - $584,999 - $17,000 =

$298,000

With an adjustable rate mortgage, the interest rate:changes periodically

Which of these properties would be subject to the Interstate Land Sales Full Disclosure Act?Al's property comprising 103 lots A subprime mortgage carries an interest rate that:is higher than the rates of prime mortgages With VA loans, which ratio is considered? total debt to income ratio If an advertisement includes the amount of the down payment, which of the following is one of the details that must also be included?annual percentage rate A lender might agree to a short sale because: it mitigates the risk of property ownership on the part of the lender When issuing a loan to a borrower with a sterling credit score, Acme Bank will charge the ___ rateWhen issuing a loan to another bank so that it can meet its reserve funds obligations, Acme Bank will charge the _______ rate.When taking out a loan from the Fed to meet its own reserve funds obligations, Acme Bank will be charged the _____ rate When issuing a loan to a borrower with a sterling credit score, Acme Bank will charge the prime interest rate.When issuing a loan to another bank so that it can meet its reserve funds obligations, Acme Bank will charge the federal funds rate.When taking out a loan from the Fed to meet its own reserve funds obligations, Acme Bank will be charged the discount rate.There is usually no legal limit on loan amounts with:conventional loansThere is usually no legal limit on loan amounts with conventional loans whereas government-backed loans have dollar limits that vary by agency.As per Regulation Z rules, an advertisement may: advertise the annual percentage rate (APR) Who generally places deed restrictions on a property?property developer In 2015, the HUD-1 Settlement Statement was replaced by

a document called the:

Closing Disclosure

With a buydown mortgage:the interest rate starts well below the market rate

Construction loans generally bear a higher-than-market

interest rate because of the risks to the lender, such as:

possible delays in construction*Construction loans generally bear a higher-than-market interest rate because of the risks to the lender, such as the inadequate release of mechanics' liens, possible delays in construction, or the financial failure of the contractor.People buy resort homes for many reasons, such as if they

are:

wishing to use it for future retirement Property appraisals take two kinds of data into

consideration: general and specific.What does the term

"general data" refer to?information about the area surrounding the property

A buyer may want to buy undeveloped land because it:is an investment that rarely loses value When a pre-existing structure violates a zoning regulation,

it is considered a:

non-conforming use The two programs under the USDA that offer agricultural

loans are the:

Farm Service Agency and Rural Development If a buyer makes a 12% down payment and obtains a $165,000 mortgage, what is the sales price of the property?$187,500The tricky thing about this problem is dealing with the 12%. Since the down payment is 12%, we know that the mortgage of $165,000 represents the other 88% of the sales price. This problem gives you the percentage (100% - 12% = 88%) and the part ($165,000 mortgage) and is asking you to find the total (the sales price of the property).To solve for the total when given the part and percentage,

we use this formula: Part ÷ Percentage = Total. So,

plugging in those numbers you would get the following

equation: $165,000 ÷ 0.88 = $187,500.

The activities listed below all take place as Ruby works through the three steps of loan approval in her efforts to locate and buy a home.

• Ruby decides to begin looking for a house to buy. 2.

Before starting her house hunt, Ruby shares her basic financial information with a lender in order to get a general idea of how much she could borrow. 3. The lender runs a complete credit check on Ruby. 4. The lender provides Ruby with a letter pre-approval letter that will make her offers to buy more attractive to sellers. 5. The lender has the home Ruby wants to buy appraised. 6. The lender makes a loan commitment for Ruby's purchase of the home.

A lender's REO goals are to:preserve and protect property value

Characteristics that make real estate valuable include:demand, utility, scarcity, and transferability The primary difference between pre-approval and final

approval is that during pre-approval:

property information is not considered What is remediation?reversing or removing*Remediation is the action of remedying something, in particular of reversing or stopping environmental damage.

The fully indexed rate is:equal to the margin plus the index

The SAFE Act aims to:enhance consumer protections and support anti-fraud

measures

PETE describes the:four basic types of public controls over land-use

Grace recently purchased a property and is planning to rent it out for business purposes. She is expecting to make a decent sum of money each year she continues to own the property.Which real estate appraisal principle is relevant to Grace's property expectations?anticipation What is eminent domain?The power of the government to seize a citizen's private property without the consent of the owner.Zoning ordinances are enforced through permits issued by

the:

municipality*Zoning ordinances are enforced through permits issued by the municipality. Before contractors

begin building or modifying an existing structure, they must obtain permits from various authorities, depending on the location of their work and the type of development upon which they are working.