Finance
What is a loan assumption in Nevada real estate and what does it require?
AA buyer taking on the seller's mortgage without lender approval
BA buyer taking over the seller's existing mortgage with lender approval, becoming personally liable for the debt✓ Correct
CA new loan at the same terms as the seller's original mortgage
DAn assumption that always eliminates the seller's liability
Explanation
A loan assumption requires lender approval under most conventional loans (due-on-sale clause). The buyer takes over the existing loan's terms. VA and FHA loans are assumable with qualification requirements. In a full assumption, the lender releases the original borrower from liability.
Related Nevada Finance Questions
- What is a purchase money mortgage (PMM) in Nevada?
- What is an FHA loan and who insures it in Nevada transactions?
- What is a blanket mortgage in Nevada commercial real estate?
- What is the 'Truth in Lending Act' (TILA) and how does it protect Nevada borrowers?
- What is the difference between a 'fixed-rate mortgage' and an 'adjustable-rate mortgage' (ARM)?
- What is a 'buydown' in mortgage financing and how does it benefit a Nevada buyer?
- What is a 'land contract' (contract for deed) in Nevada?
- What is the Nevada Housing Finance Agency's role in affordable housing?
Practice More Nevada Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nevada Quiz →