Which type of mortgage loan is insured by the Federal Housing Administration?
Why FHA loan Is Correct
Answer C: FHA loan
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.
People Also Study
Related Delaware Questions
- A buyer obtains a $300,000 mortgage at 6% annual interest. What is the first month's interest payment?Real Estate Math
- Which of the following would appear on a seller's closing statement as a credit?Escrow & Title
- Paired sales analysis is used in appraisal to:Property Valuation
- A Delaware investor buys a rental property for $350,000 and puts 25% down. The monthly mortgage payment (P&I) is $1,495. The property generates $2,200/month rent. Monthly operating expenses are $600. What is the monthly cash flow after mortgage?Real Estate Math
- A Delaware property generates $3,200 per month in rent. The mortgage payment (P&I) is $1,800/month, property taxes are $250/month, insurance is $100/month, and maintenance averages $200/month. What is the monthly cash flow?Real Estate Math
- A Delaware buyer qualifies for a $340,000 mortgage at 6.5% interest. What is the first month's interest charge?Real Estate Math
- A Delaware buyer obtains a 30-year fixed-rate mortgage at 7% interest for $250,000. The 'fixed-rate' means:Finance
- In the income approach, before applying the cap rate, the appraiser must estimate:Property Valuation
Key Terms to Know
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
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.
Study This Topic
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →