Mortgage types, loan qualification, and financing concepts tested on state real estate licensing exams.
40 cards · basic cards · AI-written, checked twice. Edit anything.
- What is the maximum loan-to-value ratio (LTV) typically required for a conventional loan without private mortgage insurance?
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80%. An LTV above 80% typically requires PMI.- What does FHA stand for in real estate lending?
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Federal Housing Administration.- What is the typical minimum down payment required for an FHA loan?
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3.5% of the purchase price.- Who is eligible for a VA (Veterans Affairs) loan?
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Military service members, veterans, and surviving spouses of veterans.- What is the primary advantage of a VA loan regarding down payment?
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No down payment is typically required (0% down).- What does USDA stand for in the context of real estate financing?
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United States Department of Agriculture.- What geographic areas does a USDA loan typically serve?
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Rural and some suburban areas designated by the USDA.- What is a conforming loan in real estate lending?
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A mortgage that meets the lending standards set by Fannie Mae and Freddie Mac.- What is the current Federal conforming loan limit for a single-family home (2024)?
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$766,550 for most of the United States.- What is a non-conforming loan?
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A mortgage that exceeds the conforming loan limit or does not meet standard lending requirements.- What is the standard debt-to-income ratio threshold for qualifying for a conventional mortgage?
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Typically 43% or less, though some lenders allow up to 50%.- What does DTI stand for in mortgage lending?
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Debt-to-Income ratio.- What is pre-qualification for a mortgage?
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An informal estimate of how much a borrower might be able to borrow based on self-reported financial information.- What is pre-approval for a mortgage?
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A lender's commitment to lend a specific amount after verifying income, assets, and credit.- What is PMI and when is it required?
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Private Mortgage Insurance, required when a borrower puts down less than 20% on a conventional loan.
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