Ohio Finance
Practice Questions & Answers (2026)
Finance questions on the Ohio real estate exam cover mortgage types, loan-to-value ratios, qualifying ratios, and federal lending laws. The Ohio Division of Real Estate & Professional Licensing 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. Ohio 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 OH 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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Ohio Finance — Practice Questions & Answers
143 questions on Finance from the Ohio real estate question bank. First 10 are free — sign up to unlock all 143.
Q1. Under the Dodd-Frank Act, a Qualified Mortgage (QM) generally prohibits:
Explanation
Qualified Mortgages under Dodd-Frank generally require that the borrower's total debt-to-income ratio not exceed 43%. QMs also prohibit certain risky loan features such as interest-only periods and negative amortization.
Q2. The Ohio Housing Finance Agency (OHFA) assists:
Explanation
The Ohio Housing Finance Agency (OHFA) provides affordable mortgage programs, down payment assistance, and tax credit programs primarily for first-time homebuyers and low-to-moderate income households.
Q3. A buyer in Ohio pays 2 discount points on a $250,000 loan. How much does the buyer pay in discount points?
Explanation
Discount points = Loan amount x Points percentage = $250,000 x 2% = $5,000.
Q4. Which of the following describes 'assumption of mortgage'?
Explanation
Assumption of mortgage occurs when the buyer takes over the seller's existing mortgage, including its terms, interest rate, and balance. The buyer becomes personally responsible for the debt.
Q5. A home sells for $340,000 with a 15% down payment. What is the LTV ratio and loan amount?
Explanation
Down payment = $340,000 x 15% = $51,000. Loan amount = $340,000 - $51,000 = $289,000. LTV = $289,000 / $340,000 = 85%.
Q6. In Ohio, which type of mortgage clause requires the entire loan balance to become due upon sale of the property?
Explanation
The due-on-sale or alienation clause requires the borrower to pay off the entire mortgage balance upon the transfer of ownership, preventing loan assumption without lender approval.
Q7. What is the primary purpose of private mortgage insurance (PMI) in Ohio conventional loans?
Explanation
PMI protects the lender against loss if the borrower defaults. It is typically required when the buyer's down payment is less than 20% of the purchase price on a conventional loan.
Q8. An Ohio buyer obtains a VA loan. Which of the following is TRUE about VA loans?
Explanation
Eligible veterans can obtain VA loans with no down payment up to the conforming loan limit. VA loans do not require monthly mortgage insurance (PMI), though a one-time funding fee typically applies.
Q9. Under RESPA, a 'kickback' or unearned fee in a real estate transaction settlement is:
Explanation
RESPA Section 8 prohibits kickbacks, fee-splitting, and unearned fees in federally related mortgage transactions. Violations can result in fines, imprisonment, and civil liability.
Q10. What does the annual percentage rate (APR) include that the stated interest rate does not?
Explanation
APR reflects the total cost of borrowing by including the interest rate plus points, origination fees, mortgage insurance, and other loan costs, expressed as an annual percentage.
Q11. A buyer in Columbus, Ohio wants to use an FHA loan. What is the minimum credit score generally required by FHA guidelines for the minimum down payment?
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