A 'hard money loan' in California is typically characterized by which of the following?
Why Short terms, high interest rates, and collateral-based underwriting from private lenders Is Correct
Answer C: Short terms, high interest rates, and collateral-based underwriting from private lenders
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 California Questions
- A 'hard money loan' is typically characterized by:Finance
- Which type of loan allows the borrower to draw funds as needed during a set period, using the home as collateral?Finance
- In California, a lender who forecloses on a purchase money deed of trust on a 1-4 unit residential property occupied by the borrower is generally:Finance
- The income approach to value is most commonly used for:Property Valuation
- What California form is commonly used to establish a formal buyer representation agreement?Agency
- Under California law, a real estate licensee who acts as a loan broker in a transaction must provide the borrower with a:Contracts
- Which form of co-ownership is most commonly used between married couples in California who want the property to pass to the survivor without probate?Property Ownership
- What is a 'hard money loan'?Finance
Key Terms to Know
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Private Mortgage Insurance (PMI)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.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Math Concepts
Study This Topic
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →