Real Estate Practice : Lesson 255 - 07/31/09 01:27 PM
Federal legislation that will prevent discrimination against an applicant because of their race is RESPA.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.
A. False
The ECOA or the Equal Credit Opportunity Act is legislated to protect loan applicants regardless of their national origin, religion, color, race, whether or not their income is received from a public assistance program, their marital status or age.
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Real Estate Practice : Lesson 254 - 07/31/09 01:19 PM
In lease-option type situations the rent charged to the tenant is rarely higher than the fair market rent for the property.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.
A. False
The rent is usually higher than the market rate in a lease-option contract because the tenant has the option to purchase the property.
Check with your attorney or research the fair market rental rates.
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Real Estate Practice : Lesson 253 - 07/31/09 01:04 PM
It is never advisable for a buyer to consider raising cash for a balloon payment by refinancing his or her loan.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.
A. False
Refinacing may be an option for a buyer when the balloon payment becomes due.
It might give the buyer the resources needed to avoid having to pay the full amount due when the balloon payment is due.
Check with your lender.
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Real Estate Practice : Lesson 252 - 07/31/09 01:04 PM
A seller will most likely consider using a seller second to supplement a new loan for a buyer when interest rates are high.
Is this fact true or false ?
Please remember to take your time. The solution is posted below the wildlife photo.
A. True
When interest rates are high the number of buyers that will qualify for a loan are fewer.
A seller might offer secondary financing as a motivating factor to help the buyer.
Check with your lender for more informetion.
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Real Estate Practice : Lesson 251 - 07/31/09 01:03 PM
A land contract may be used to finance the buyer's purchase of a home.
This is the first mortgage.
Is this fact true or false ?
Please remember to take your time. The solution is posted below the wildlife photo.
A. True
The land contract may not be used for a seller second mortgage, however.
Check with your lender for more details.
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Real Estate Practice : Lesson 250 - 07/31/09 01:03 PM
A land contract is usually acceptable for a seller second which will supplement an institutional loan.
Is this fact true or false ?
Please remember to take your time. The solution is posted below the wildlife photo.
A. False
A land contract cannot be used for a seller second supplementing a loan.
A mortgage or a deed of trust is acceptable.
Remember to check with your lender for up to date information.
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Real Estate Practice : Lesson 249 - 07/31/09 01:02 PM
The rule of thumb, when qualifying a VA loan applicant, is that debt to income ratio should not exceed 55%.
Is this fact true or false ?
Please remember to take your time. The solution is posted below the wildlife photo.
A. False
The debt to income ratio should not exceed 41% for the VA loan, although the consideration of residual forms of income, such as a large cash settlement, could change the percentage.
Check with your lender to see what the current status of the process incurs.
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Real Estate Practice : Lesson 248 - 07/31/09 01:01 PM
The VA will consider and allow secondary financing only if the total amount of the loan to be financed exceeds the appraised value of the property.
Is this fact true or false ?
Please remember to take your time. The solution is posted below the wildlife photo.
A. False
Not exceeding the the total amount of the appraised value of the property is a condition for the VA's consideration of secondary financing.
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Real Estate Practice : Lesson 247 - 07/26/09 05:58 PM
A veteran is applying for a 400,000 dollar loan, which is the purchase price of the home, and has full VA entitlement. The home was appraised at 425,000 dollars.
The required downpayment for the loan is 1.5% of the total loan amount, or $6000 dollars if no downpayment is applied to the cost.
Is this fact true or false ?
Please remember to take your time. The solution is posted below the wildlife photo.
A. False
One of the key characterisitics of a VA loan is that no downpayment is required as long as the loan does not … (0 comments)
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Real Estate Practice : Lesson 246 - 07/26/09 05:41 PM
Prepayment penalties are always a condition of underwriting a VA loan.
Is this fact true or false ?
Please remember to take your time. The solution is posted below the wildlife photo.
A. False
Prepayment penalties are not allowed with a VA loan.
This is considered one of the key characterisitics of a VA loan.
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Real Estate Practice : Lesson 245 - 07/26/09 05:29 PM
A veterans entitlement may only be restored after his or her VA loan is assumed and the one who assumes the loan is not a veteran.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.
A. False
One of the conditions for restoration of entitlement is that the new borrower must be a veteran and agree to substitute his or her entitlement for the original borrower's entitlement.
If the parties meet the specifications for qualification, and loan payments are up to date, and the new borrower is approved, the … (0 comments)
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Real Estate Practice : Lesson 244 - 07/26/09 05:28 PM
A veteran may receive a VA guaranteed loan only on a single family residence.
One to four unit unit residences are ineligible.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.
A. False
A one to four unit residence is eligible for a VA loan as long as the veteran occupies one of the units.
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Real Estate Practice : Lesson 243 - 07/26/09 05:28 PM
The the VA will guarantee a loan only if the lender does not require a downpayment.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.
A. False
Lender's will make a loan without requiring a downpayment because the government has made a guaranty to reduce the risk to the lender if the buyer ultimately defaults on the loan.
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Real Estate Practice : Lesson 242 - 07/26/09 05:27 PM
Discount points always have to be paid by the borrower on an FHA loan.
Is this fact true or false ?
Remember to take your time. The solution is posted below the wildlife photo.
A. False
Discount points may be paid by either the borrower or the seller.
Other parties are allowed to pay the discount points on the FHA loan for the borrower.
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Real Estate Practice : Lesson 241 - 07/21/09 11:05 PM
When the FHA considers the application of the local loan ceiling for the making an FHA loan, the decision is based on both the costs of mortgage insurance and the debt-to-income ratio of the borrower.
Is this fact true or false ?
Please remember to take your time. The solution is posted below the wildlife photo.
A. False
The FHA's decision to establish a loan ceiling for the purchase of a property is based upon the median housing costs of the region in which the loan is being applied for.
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Real Estate Practice : Lesson 240 - 07/21/09 10:57 PM
For hypothetical purposes, a home is located in a low closing cost area of a state and it's selling for $400,000.
It was appraised at $410,000.
The FHA max ceiling for the loan is $390,000.
The maximum amount that the buyer would be able to receive is the FHA max of $390,000.
Is this fact true or false ?
Please take your time. The solution is poted below the wildlife photo.
A. False
The FHA will have a maximum loan amount available based under the FHA's LTV (loan to value) rules.
In a state that is low-closing recognized and … (0 comments)
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Real Estate Practice : Lesson 239 - 07/21/09 10:35 PM
A buyer wants to finance the purchase of a duplex with an FHA loan.
The buyer may do this only if the intention is to rent out both of the units.
Is this fact true or false ?
Please take your time. Te solution is posted below the wildlife photo.
A. False
Federal Housing Administration (FHA) loans are normally made to finance the purchase of an owner-occupied primary residence.
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Real Estate Practice : Lesson 238 - 07/21/09 10:25 PM
The Federal Housing Administration not only insures the loans it sells, but it buys them also.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.
A. False
The Federal Housing Administration neither buys nor sells loans.
The Federal Housing Administration does insure loans, however.
… (0 comments)
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Real Estate Practice : Lesson 237 - 07/18/09 10:00 PM
Secondary financing of a property may always be used to cover the minimum cash investment of the borrower as long as the sum of the two loans exceed the properties value.
Is this fact true or false ? (puhleeez, you better not miss this one)
Remember to take your time. The solution is posted below the wildlife photo.
A. Absolutely false
Secondary finacing may be used only if the two loans do not exceed the value of the property.
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Real Estate Practice : Lesson 236 - 07/18/09 09:09 PM
If secondary financing is used in alignment with a conventional loan it may never be partially or fully amortized with a balloon payment.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.
A.False
Secondary financing may certainly be fully or partially amortized, and with a balloon payment.
Seconday financing may even be interest only.
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Real Estate Practice : Lesson 235 - 07/18/09 09:07 PM
A man is applying for aconventional loan with an LTV of 90%.
He has a monthly income of 3000 dollars a month.
His total monthly recurring debt obligations equal 500 dollars.
What is the maximum monthly mortgage payment that this buyer will qualify for ?
A. $580
Here's how it works.
3000 total monthly income*0.36 or 36% of monthly income for mortgage=1080 total for mortgage -500 in additional recurring debt subtracted from the maximum allowable for the mortgage=580 dollars total available for mortgage payment
36% is the standard for lending if there are other monthly debt obligations
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Real Estate Practice : Lesson 234 - 07/18/09 09:05 PM
When we talk about a 2-1 buydown plan we're talking about buying down the interest rate at 1% for two years.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.
A. False
A 2-1 buydown plan is one that is considered a temporary buydown and the interest rate is reduced by 2% the first year and 1% the second year.
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Real Estate Practice : Lesson 233 - 07/18/09 09:02 PM
When considering a bi-weekly loan, one of the disadvantages is that it will take more time to build equity.
Is this fact true or false ?
Please remember to take your time. The solution is posted below the wildlife photo.
A. False
Equity will build much faster with a bi-weekly loan because the borrower is essentially making more yearly payments.
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Real Estate Practice : Lesson 232 - 07/18/09 09:00 PM
Private mortgage insurance is usually required if the loan-to-value ratio exceeds 80%.
Is this true or false ?
Please remember to take your time. The solution is posted below the wildlife photo.
A. True
PMI (provate mortgage insurance) is most always required for loans which exceed 80% of the LTV (loan-to-value) ratio.
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Light My Fire - 07/12/09 03:23 PM
The Mississippi Delta is hot.
So is Memphis.
This is the time of year we Southern folk call "Dog Days".
Heat indexes in the shade along highway 49 west can soar to 118f. That's Hades !
There's an abundance of new construction in the Delta. Many homes exposed to the sweltering heat of the noon day sun which can kill a man.
But they're cool inside.
The cost of cooling your home can be saved by simple cooling techniques which won't require expensive modifications or professional installation.
Here are ideas you can use for free, low-cost, ways to cool your home and save … (21 comments)
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Real Estate Practice : Lesson 231 - 07/11/09 08:24 PM
A buydown is not an option when the lender is considering a way to help a buyer qualify for a loan.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.
A. False
The buydown will allow a third party or the seller to pay a sum to the lender which will lower the buyer's interest rate on the loan.
By creating a reduction in the borrower's intitial payment it will make it easier for the borrower to qualify for the loan.
… (0 comments)
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Real Estate Practice : Lesson 230 - 07/11/09 08:11 PM
If you think the appraisal on the property is too low you should request and submit a reconsideration request only if it is requested by a loan officer.
Is this fact true or false ?
Please remember to take your time. The solution is posted below the wildlife photo.
A. False
You don't have to wait on the loan officer.
You can redefine and update your CMA, assess the items in the current appraisal that led to the low appraisal fiqure, and request reconsideration if you think it will be reviewed again.
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Real Estate Practice : Lesson 229 - 07/11/09 07:34 PM
A property lost some value because it was close to a county landfill site.
Ths is know as functionl obsolescence.
Is this fact true or false ?
Remember to take your time. The solution is posted below th wildlife photo.
A. False
When a property loses value because of some condition outside of, and nearby, the property this is know as external obsolescence.
This is a curable condition.
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Real Estate Practice : Lesson 228 - 07/11/09 07:33 PM
Most all sales comparison methods of appraisal are based on the assessed values of property as used for the purposes of establishing revenue for property taxes.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.
A. False
A sales comparison mehtod will rely on recent sales prices of properties reviewed as sales apply to comparable properties..
Expired and current listings are not included in the sales comparison method, although they may be included in a comparative market analysis or CMA.
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Real Estate Practice : Lesson 227 - 07/11/09 07:32 PM
As a general rule, the appraiser will not use a sale as a comparable in his analysis unless the sale was considered to be an arm's length transaction.
Is this fact true or false ?
Please take your time. The solution posted below the wildlife photo.
A. True
Appraiser's don't include sales that aren't arm's length transactions, sales carried out under normal conditions carried out by an informed buyer and seller acting without pressure.
Location, the date of the sale and the type of financing might see their way into the process.
… (0 comments)
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Real Estate Practice : Lesson 226 - 07/11/09 07:30 PM
When an appraiser is considering the value of a residential property the most valid and important method of appraisal that the appraiser will use is called the replacement cost method of appraisal.
Is this true or false ?
Take your time. The solution is posted below the wildlife photo.
A. False
When considering the value of residential property the most important method that the appraiser will employ is the sales comparison method because it has more of a bearing and is connected with the subject property at issue.
… (0 comments)
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Real Estate Practice : Lesson 225 - 07/11/09 07:29 PM
A low risk loan is one that doesn't have to have a downpayment rather than a low loan-to-value ratio.
Is this fact true or false ?
Please take your time. the solution is posted below the wildlife photo.
A. False
From the lender's point of view the low loan-to-value ratio loan is the most desirable low risk loan.
80% ltv or lower is typically a low risk loan.
Larger downpayments reduce default risk.
Larger downpayments also help to insure that more of the original loan amount could be recovered in the event of a foreclosure sale.
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God's House - 07/06/09 07:59 AM
How should one approach the task of selling the House of God ?
The Synagogue and the Ark, the Church and the steeple, the Mosque with the minaret.
Usually, once the board of directors, or the congregation, has decided to part with their place of worship a variety of factors have influenced the decision to sell beforehand. The most important of these is the need to relocate because the property has outgrown it's usefulness to the congregation because of age, or perhaps the sanctuary is just not large enough to accommodate a growing membership.
The place of worship is … (7 comments)
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Real Estate Practice : Lesson 224 - 07/06/09 02:19 AM
When a lender seeks a residential appraisal the lender is most likely seeking a appraisal that will determined the assessed value of the home.
Is this true or false ?
Take your time. The solution is posted below the wildlife photo.
A. False
When the lender seeks a residential appraisal for a home the lender is seeking an appraisal that will estimate market value.
Seeking assessed value is the role of the property assessor for property tax or ad valorem purposes.
… (0 comments)
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Flamingo Boogie - 07/03/09 06:07 PM
I really appreciate all of the fantastic comments and all of the sweet, and thoughtful, expressions of approval for the music from all of you. I certainly believe that greener pastures are the reward for patience and we'll all get through this disgustingly foul national financial calamity together, and come out smelling like roses. The market will slump and the market will soar, but throughout it all my piano will roar. So in the spirit of fun and good camaraderie, here's another for you to enjoy and have a good laugh. Happy Independence Day !
-David-
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