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Real Estate Finance Champions Exam Prep

Finance10 CardsCreated 3 months ago

This deck covers key concepts and questions from the Real Estate Finance Champions practice exam, including loan types, financial ratios, and federal policies.

What must be disclosed in the Projected Payments section of the Loan Estimate form?

Mortgage Insurance
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Key Terms

Term
Definition
What must be disclosed in the Projected Payments section of the Loan Estimate form?
Mortgage Insurance
What is the minimum downpayment on a VA loan?
0% of the sales price
What is the process of creating a new mortgage loan called?
Origination
What type of organizations are credit unions?
Not-for-profit organizations that exist to serve their members.
What does the front ratio compare?
The borrower's proposed house payment to their gross monthly income.
What is the age of a property based on its maintenance and upgrades called?
Effective age

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TermDefinition
What must be disclosed in the Projected Payments section of the Loan Estimate form?
Mortgage Insurance
What is the minimum downpayment on a VA loan?
0% of the sales price
What is the process of creating a new mortgage loan called?
Origination
What type of organizations are credit unions?
Not-for-profit organizations that exist to serve their members.
What does the front ratio compare?
The borrower's proposed house payment to their gross monthly income.
What is the age of a property based on its maintenance and upgrades called?
Effective age
What is the loan to value ratio?
The percentage of value that a lender is willing to finance.
What is a collateral-dependent loan also known as?
Hard money loan
What does FHA insurance do for lenders?
It provides default insurance that will pay a claim to a lender in the event of default.
What is the most probable sale price of a property known as?
Market Value