R E Ch 20 Government Participation in Real Estate Finance

What is the maximum VA loan in Nevada?

There is no maximum, but VA loans are generally limited to $417,000.

A full summary of all consecutive grants, conveyances, wills, records and judicial proceedings affecting title to a specific parcel of real estate, together with a statement of all recorded liens and encumbrances affecting the property and their present status, is known as:

The abstract of title.

The VA does which of the following:

Guarantees loans made to homebuyers.

The federal lender that makes loans for home purchases or ?construction in rural areas and small communities outside metropolitan areas is known as the:

USDARD

To be eligible for a VA loan, one restriction says that the property must be owner-occupied for at least:

One year.

The FHA does which of the following:

Insures loans made to homebuyers.

Which of the following factors should not be considered when qualifying a buyer?

His career.

The central banking system designed to manage the nation's economy is:

The Federal Reserve System.

To obtain a VA loan, the veteran must first apply for and be granted:

A Certificate of Eligibility.

A loan in which the borrower is not held personally liable on the note, and in which the lender generally feels confident that the property used as collateral will be adequate security for the loan, is:

A non-recourse loan.

USDA Rural Development is overseen by the

U.S. Department of Agriculture (USDA)

USDA Rural Development operates over

50 financial assistance programs

the ratio of the purchaser’s annual net income compared to the purchaser’s annual debt service.

Debt service coverage ratio (DSCR)

A history of the title deeds and documents associated with a piece of real estate. These documents include mortgages, deeds, grants, conveyances, wills, records and judicial proceedings affecting title.

Abstract and opinion

When a non-recourse clause is included in the sale's agreement, the seller of the security is not liable if the borrower defaults.

NON-RECOURSE CLAUSE

The non-performance of a duty or obligation that is part of a contract.

DEFAULT

A written pledge by a lender to lend a certain amount of money to a qualified borrower on a particular piece of real estate for a specified time under specific terms

CONDITIONAL APPROVAL

The analysis of the extent of risk assumed in connection with a loan.

UNDERWRITING

A legal doctrine by which a person is prevented from asserting rights or facts that are inconsistent with a previous position or representation made by act, conduct or silence.

ESTOPPEL CERTIFICATE

A clause sometimes inserted in a mortgage note in which the lender waives the right to a deficiency judgment.

EXCULPATORY CLAUSE

A fund of the buyer's money that the lender sets aside for future needs relating to the parcel of property. Most lenders require an impound account to cover future payments of insurance and taxes.

IMPOUNDS

The process of individuals investing their funds directly instead of placing money with banks, savings and loans and other savings institutions. Disintermediation has a direct influence on the scarcity of money or surplus of money available for mortgages. 

DISINTERMEDIATION