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.   A risk-free security
B.   An improved credit rating for home owning Americans
C.   A global market for mortgage-backed securities
D.   The real estate profession
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.   Mortgage forgiveness
B.   Borrower qualifying standards
C.   Long-term amortized loan
D.   Construction 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.   Construction standards
B.   Borrower qualifying standards
C.   Long-term amortized loan
D.   Appraiser licensing
Question #4
The FHA Section 203(h) program assists ______ with an insured mortgage.
A.   Victims of a presidentially declared disaster
B.   Native Americans living on tribal land
C.   Homeowners over the age of 62
D.   Recipients of Housing Choice Voucher funds to purchase a home
Question #5
FHA-insured loan programs cover all of the following EXCEPT ______.
A.   Recreational vehicles
B.   Manufactured housing
C.   Duplexes
D.   Reverse mortgages
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.   Make borrowing with no cash down easy
B.   Allow lenders to approve 90% of borrowers
C.   Are different for first-time homeowners than for anyone who has owned a home before
D.   Are somewhat less stringent than standards for conventional loans
Question #7
The Federal Housing Administration's loan program is designed for borrowers who ______.
A.   Need their loan guaranteed
B.   Have a minimal down payment and less than stellar credit
C.   Have stellar credit
D.   Have nothing saved for a down payment
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 234(c)
B.   Title II, Section 203(b)
C.   Title I
D.   Title II, Section 255

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