An Alaska veteran purchases a home using a VA loan. Which statement about VA loans is correct?
Why No down payment is required and there is no PMI Is Correct
Answer B: No down payment is required and there is no PMI
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
Key Finance Terms in This Question
People Also Study
Related Alaska Questions
- A buyer in Anchorage purchases a home for $450,000 with a 20% down payment. What is the loan amount?Finance
- Private Mortgage Insurance (PMI) is typically required when the buyer's down payment is:Finance
- What is the purpose of private mortgage insurance (PMI) on an Alaska conventional loan?Finance
- A buyer makes a 5% down payment on a $380,000 Alaska home. What is the mortgage amount?Real Estate Math
- Which type of Alaska mortgage loan is specifically designed for rural areas and typically requires no down payment?Finance
- A buyer purchases a $260,000 Alaska home with an FHA loan at 3.5% down. The FHA upfront MIP is 1.75% of the loan amount. What is the upfront MIP?Real Estate Math
- A buyer in Alaska purchases a $420,000 home, making a 15% down payment. How much private mortgage insurance is required annually if the PMI rate is 0.75% of the loan amount?Real Estate Math
- A property in Alaska is purchased for $500,000. The buyer makes a 20% down payment and finances the remainder. What is the mortgage amount?Real Estate Math
Key Terms to Know
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Math Concepts
Study This Topic
Practice More Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →