Wise Practice Test Exam Questions With 100% Correct Answers 2024/2025

Wise Practice Test Exam Questions With 100% Correct Answers 2024/2025 To qualify for a Federal Housing Administration (FHA) loan, a person must generally A. have at least a high school diploma. B. have one-quarter of the cost of the home for a down-payment. C. fulfill income guidelines. D. provide two individuals to co-sign the loan. - answerCorrect Answer C Reason The Federal Housing Administration (FHA) insures lenders who make mortgage loans that are riskier than regular bank loans because FHA loans are made to individuals who usually would not qualify for regular low-cost mortgages from banks (usually first-time home buyers with lower income and a weaker credit score). The objective of this federal agency is to encourage home ownership while helping to protect the lenders at the same time A person has three credit cards with very large outstanding balances and is unable to make payments on any of them. Which action should the person take? A. Notify a credit reporting agency in order to avoid a late fee. B. File for bankruptcy in order to maintain ones current credit score. C. Notify the credit card companies in order to negotiate a new payment plan. D. Contact the Internal Revenue Service in order to avoid paying income tax this year. - answerCorrect Answer C Reason When experiencing financial difficulties, the first action to take is to notify creditors, in this case the three credit card companies. Quite often the company will assist in negotiating new terms. When a person brings an item to a pawnshop to obtain cash, the transaction is considered A. a collateralized loan. B. a custodial payment. C. an unsecured loan.