Finance
A wraparound mortgage is a financing arrangement where:
ATwo lenders share risk on one loan
BA new loan wraps around an existing mortgage, with the seller collecting payments✓ Correct
CThe buyer assumes the seller's loan with bank approval
DA private lender guarantees a conventional loan
Explanation
A wraparound mortgage is a form of seller financing where the seller creates a new mortgage that includes the existing loan balance. The buyer makes payments to the seller, who continues paying the original lender.
Related Kentucky Finance Questions
- A Kentucky home's purchase price is $350,000. The buyer gets a conventional loan at 90% LTV. The lender requires PMI at 0.6% annually. What is the monthly PMI cost?
- In Kentucky, a 'jumbo loan' is a mortgage that:
- A Kentucky interest-only mortgage requires the borrower to:
- In a Kentucky seller-financed transaction, the seller who takes back a mortgage must comply with:
- A seller in Kentucky who carries back a purchase money mortgage becomes the:
- Which type of mortgage loan is insured by the Federal Housing Administration?
- A Kentucky 'stated income' loan, where the lender does not verify income documentation, is now largely:
- In Kentucky, a purchase-money mortgage is one where:
Practice More Kentucky Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kentucky Quiz →