Question 1

The FHA maximum debt ratios are:

Group of answer choices

25% and 35%.

31% and 43%

50% and 70%.

29% and 45%

Question2

The maximum origination fee for both FHA and VA loans is:

Group of answer choices

1%.

10%.

20%.

$1500.00

Question3

The FHA:

Group of answer choices

buys loans in the secondary market.

sells loans to the secondary market.

is a direct lender.

insures loans only.

Question4

The minimum requirement in needed repairs for an FHA 203k loan is:

Group of answer choices

$20,000.

$10,000.

$5,000.

none of the above.

Question5

The maximum veteran entitlement for a VA loan guaranty is:

Group of answer choices

$36,000.

$360,000.

$360.

none of the above.

Question6

For an FHA loan on mixed-used use property, the allowable percentage of commercial use for a single-story building must not be more than:

Group of answer choices

25%.

50%.

75%.

none of the above.

Question7

The first step in the VA loan process is:

Group of answer choices

to fill out a loan application.

for the veteran to obtain a Certificate of Eligibility.

to obtain a loan guaranty from the VA.

none of the above.

Question8

An estoppel letter is used to:

Group of answer choices

prevent a lender from participating in a loan.

protect an agent engaging in a creative financing transaction.

prevent a lender from exercising the due-on-sale clause.

none of the above.

Question9

The purchaser of an option is called:

Group of answer choices

the optionor.

the optionee.

the lessee.

none of the above.

Question10

A wraparound mortgage can:

Group of answer choices

provide an above-market rate of return to the seller.

allow a buyer to have a below-market interest rate.

be used in place of a simple assumption.

all of the above.

Question11

A lease/option is used to:

Group of answer choices

keep a sale alive.

reduce the selling price over time.

provide income to the seller while awaiting the close of a sale.

all of the above.

Question12

Those who participate in creative financing should:

Group of answer choices

consult a real estate attorney.

exercise caution.

both a and b.

none of the above.

Question13

Liquid assets include:

Group of answer choices

real estate only.

cash only.

any assets that can readily be converted to cash.

none of the above.

Question14

Market value is:

Group of answer choices

the amount the broker needs to do the loan.

the sales price of the home.

the most probable price that a property should bring in an open and competitive market.

none of the above.

Question15

Compound interest is:

Group of answer choices

interest paid on the principal only.

interest paid on the principal and the accrued interest.

compounded monthly only.

none of the above.

Question16

A proration is used to:

Group of answer choices

convert the nominal rate to an APR.

calculate the broker's commission.

divide expenses fairly between buyer and seller.

none of the above.

Question17

In California the Real Estate Commissioner can:

Group of answer choices

deny any license issued by the Bureau of Real Estate.

suspend any license issued by the Bureau of Real Estate.

revoke any license issued by the Bureau of Real Estate.

all of the above.

Question18

In addition to any individual state requirements, pre-requisites for licensing by NMLS include:

Group of answer choices

testing.

a criminal background check.

pre-licensing education.

all of the above.

Question19

In California, the minimum score required in order to pass the Salesperson Exam is:

Group of answer choices

65%.

70%.

75%.

80%.

Question20

A clause in a finance instrument that allows a lender to demand immediate payment in the event of a default by the borrower is called a(n):

Group of answer choices

prepayment clause.

alienation clause.

acceleration clause.

none of the above.