Florida Finance
Practice Questions & Answers (2026)
Finance questions on the Florida real estate exam cover mortgage types, loan-to-value ratios, qualifying ratios, and federal lending laws. The Florida Department of Business & Professional Regulation (DBPR) tests both the mechanics of real estate financing and the regulatory framework — particularly RESPA, TILA (Truth in Lending), and the TRID rules that govern loan disclosures. Florida candidates often lose points on financing questions because they understand the concept but miss the specific numerical thresholds or disclosure timing requirements that appear on the FL exam. Pay particular attention to ARM vs. fixed-rate mortgage distinctions, the calculation of LTV ratios, and what information must appear in specific disclosure documents.
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Florida Finance — Practice Questions & Answers
134 questions on Finance from the Florida real estate question bank. First 10 are free — sign up to unlock all 134.
Q1. Florida is known for its heavy use of title insurance in real estate closings. Title insurance in Florida typically includes all of the following EXCEPT:
Explanation
Title insurance covers defects, liens, and encumbrances that existed before or at the time of closing but were not discovered during the title search. It does NOT cover defects that arise after the policy's effective date.
Q2. A Florida property is purchased for $450,000. The buyer makes a 5% down payment and finances the balance with a conventional loan. What is the loan amount?
Explanation
Down payment = $450,000 × 5% = $22,500. Loan amount = $450,000 − $22,500 = $427,500.
Q3. Under RESPA (Real Estate Settlement Procedures Act), a 'kickback' or referral fee paid between settlement service providers is:
Explanation
RESPA prohibits unearned fees and kickbacks among settlement service providers. However, referral fees are permissible only when they are for actual, bona fide services rendered and are properly disclosed.
Q4. Florida's documentary stamp tax on mortgages (intangible tax) is calculated based on the:
Explanation
In Florida, the documentary stamp tax on promissory notes and mortgages (intangible tax) is calculated at $0.35 per $100 (or fraction thereof) of the mortgage/loan amount.
Q5. A wraparound mortgage in Florida is an example of:
Explanation
A wraparound mortgage is a form of seller financing where the seller holds a new mortgage that 'wraps around' and includes the existing underlying mortgage. The buyer makes payments to the seller, who continues paying the original lender.
Q6. In Florida, the documentary stamp tax on a mortgage (also called an 'intangible tax' or 'mortgage tax') is charged at:
Explanation
Florida charges documentary stamp tax on promissory notes and mortgages (the intangible tax) at $0.35 per $100 (or fraction thereof) of the principal amount of the note. Separate doc stamps are charged on the deed at $0.70 per $100 of the consideration.
Q7. What does 'loan-to-value ratio' (LTV) represent in a Florida mortgage transaction?
Explanation
LTV is the loan amount divided by the lesser of the appraised value or purchase price. For example, a $180,000 loan on a $200,000 property = 90% LTV. Higher LTV typically means more risk for the lender and may require PMI.
Q8. A Florida buyer obtains an FHA loan with 3.5% down. On a $250,000 purchase price, what is the required down payment?
Explanation
FHA requires a minimum 3.5% down payment for borrowers with qualifying credit scores. $250,000 × 3.5% = $8,750.
Q9. Which federal law requires lenders to provide borrowers with a Loan Estimate within 3 business days of receiving a loan application?
Explanation
The TRID rule (TILA-RESPA Integrated Disclosure), also known as the 'Know Before You Owe' rule, requires lenders to provide the Loan Estimate within 3 business days of receiving a complete loan application.
Q10. In Florida, a 'purchase money mortgage' is one where:
Explanation
A purchase money mortgage (PMM) is created when the seller accepts a mortgage from the buyer as partial payment of the purchase price. The seller essentially acts as the lender. PMMs are also called 'seller financing' or 'owner financing.'
Q11. What is the maximum conforming loan limit for a single-family home in most Florida counties (as of recent FHFA guidelines)?
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