Texas Real Estate Finance Test Questions and
100% Correct Answers
Which of the following is true of a VA hybrid loan? - Answer It converts to fixed rate
loans after three years.
What is not part of the required lender disclosures? - Answer Number of loans
originated to women.
What is the minimum down payment that allows a borrower to avoid buying mortgage
insurance premium (MIP)? - Answer 20%
Which calculations on the Closing Disclosure (aka HUD-1) form are usually completed
first? - Answer Settlement Charges
What effect does a debit to the seller have on charges made to the parties involved in
the transaction? - Answer Decreases the amount the seller receives after closing."
Jerry sold his last home five years ago and moved into an apartment. Now Jerry is
thinking about buying a home and has seen some great programs for first time home
buyers. Will Jerry qualify as a "first time home buyer"? He has owned no other real
estate. - Answer Yes, because legally, anyone that has not owned for three years is a
first time home buyer.
What effect does a debit to the buyer have on charges made to the parties involved in
the transaction? - Answer Increases the amount due from the buyer at closing.
, What entity assembles mortgages into pools and issues pass through certificates,
multiclass bonds, or other securities to investors in the secondary mortgage market? -
Answer A REMIC
Which of the following is NOT one of the principal buyers of real estate loans on the
secondary market? - Answer Sallie Mae
The buyer of a $450,000 residential property obtains 80% loan. The seller, who must pay
off the $247,000 remaining on his mortgage, agrees to pay the total 7% commission to
the tow real estate firms involved. ABC Realty will receive 4% commission and XYS
Realty will receive 3% commission. What is the dollar amount each real estate firm will
receive from the sale? - Answer $18,000 to ABC Realty; and $13,500 to XYZ Realty
When was the FHA created? - Answer 1934
Fannie Mae's Desktop Underwriter and Freddie Mac's Loan Prospector do NOT use
which of the following information in qualifying applicants for conforming loans? -
Answer FICO Credit Scores
VA loan may be used for all of the following EXCEPT? - Answer Purchasing an investment
property.
What is the amount the VA loan guarantee? - Answer entitlement
When a loan is paid off in equal monthly payments that contribute to both principal and
interest until the entire loan is paid, it is ? - Answer amortized
Which of the following statements is true of the electronic underwriting systems
provided by Fannie Mae and Freddie Mac? - Answer
100% Correct Answers
Which of the following is true of a VA hybrid loan? - Answer It converts to fixed rate
loans after three years.
What is not part of the required lender disclosures? - Answer Number of loans
originated to women.
What is the minimum down payment that allows a borrower to avoid buying mortgage
insurance premium (MIP)? - Answer 20%
Which calculations on the Closing Disclosure (aka HUD-1) form are usually completed
first? - Answer Settlement Charges
What effect does a debit to the seller have on charges made to the parties involved in
the transaction? - Answer Decreases the amount the seller receives after closing."
Jerry sold his last home five years ago and moved into an apartment. Now Jerry is
thinking about buying a home and has seen some great programs for first time home
buyers. Will Jerry qualify as a "first time home buyer"? He has owned no other real
estate. - Answer Yes, because legally, anyone that has not owned for three years is a
first time home buyer.
What effect does a debit to the buyer have on charges made to the parties involved in
the transaction? - Answer Increases the amount due from the buyer at closing.
, What entity assembles mortgages into pools and issues pass through certificates,
multiclass bonds, or other securities to investors in the secondary mortgage market? -
Answer A REMIC
Which of the following is NOT one of the principal buyers of real estate loans on the
secondary market? - Answer Sallie Mae
The buyer of a $450,000 residential property obtains 80% loan. The seller, who must pay
off the $247,000 remaining on his mortgage, agrees to pay the total 7% commission to
the tow real estate firms involved. ABC Realty will receive 4% commission and XYS
Realty will receive 3% commission. What is the dollar amount each real estate firm will
receive from the sale? - Answer $18,000 to ABC Realty; and $13,500 to XYZ Realty
When was the FHA created? - Answer 1934
Fannie Mae's Desktop Underwriter and Freddie Mac's Loan Prospector do NOT use
which of the following information in qualifying applicants for conforming loans? -
Answer FICO Credit Scores
VA loan may be used for all of the following EXCEPT? - Answer Purchasing an investment
property.
What is the amount the VA loan guarantee? - Answer entitlement
When a loan is paid off in equal monthly payments that contribute to both principal and
interest until the entire loan is paid, it is ? - Answer amortized
Which of the following statements is true of the electronic underwriting systems
provided by Fannie Mae and Freddie Mac? - Answer
