CA Real Estate Finance Course » 2021 » Sec 8 Unit 1 Exam

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Question #1
By stabilizing and improving the mortgage market, the FHA helped to build ______.
A.   The real estate profession
B.   A global market for mortgage-backed securities
C.   An improved credit rating for home owning Americans
D.   A risk-free security
Question #2
The Tierney family obtained their four-bedroom home with an FHA loan 10 years ago. In another 20 years, they will have paid it off. Which FHA benefit applies here?
A.   Long-term amortized loan
B.   Mortgage forgiveness
C.   Construction standards
D.   Borrower qualifying standards
Question #3
Stan builds new homes. He feels good knowing that he’s providing safe and healthy homes for the community and that they are quality structures that will shelter people for many years to come. Which FHA benefit is at work here?
A.   Borrower qualifying standards
B.   Long-term amortized loan
C.   Construction standards
D.   Appraiser licensing
Question #4
The FHA Section 203(h) program assists ______ with an insured mortgage.
A.   Homeowners over the age of 62
B.   Native Americans living on tribal land
C.   Recipients of Housing Choice Voucher funds to purchase a home
D.   Victims of a presidentially declared disaster
Question #5
FHA-insured loan programs cover all of the following EXCEPT ______.
A.   Recreational vehicles
B.   Manufactured housing
C.   Reverse mortgages
D.   Duplexes
Question #6
The Federal Housing Administration's qualifying standards for a mortgage loan ______, but the mortgage insurance the FHA provides balances the risk for the lender.
A.   Are different for first-time homeowners than for anyone who has owned a home before
B.   Are somewhat less stringent than standards for conventional loans
C.   Allow lenders to approve 90% of borrowers
D.   Make borrowing with no cash down easy
Question #7
The Federal Housing Administration's loan program is designed for borrowers who ______.
A.   Need their loan guaranteed
B.   Have nothing saved for a down payment
C.   Have a minimal down payment and less than stellar credit
D.   Have stellar credit
Question #8
Beverly has applied for a loan to purchase a Craftsman-style home for herself and her teenage son. Her mortgage broker helps her find an FHA loan program that accommodates her low down payment. Which program will serve Beverly’s needs?
A.   Title II, Section 203(b)
B.   Title II, Section 234(c)
C.   Title I
D.   Title II, Section 255

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