Finance
Which loan type guarantees a portion of the loan, allowing lenders to make loans with lower down payments to qualified buyers?
AConventional loan
BHard money loan
CFHA-insured loan✓ Correct
DBridge loan
Explanation
FHA (Federal Housing Administration) loans are insured by the FHA, reducing lender risk and allowing borrowers to purchase with as little as 3.5% down.
People Also Study
Related Nevada Questions
- A Nevada lender refuses to make mortgage loans in a specific ZIP code in North Las Vegas citing 'high risk.' This practice is known as:Fair Housing
- Private Mortgage Insurance (PMI) is typically required when the borrower's down payment is less than:Finance
- In Nevada, which type of title insurance policy protects the lender's interest?Escrow & Title
- What is the Nevada Housing Division's first mortgage loan program for first-time buyers and what are the general income limits?Finance
- A Las Vegas home is appraised at $460,000. The lender will loan 80% of appraised value or purchase price, whichever is lower. The purchase price is $470,000. What is the maximum loan amount?Real Estate Math
- A Nevada borrower's loan application shows a gross monthly income of $7,500 and total monthly debt payments of $2,850 including proposed housing costs. What is the debt-to-income (DTI) ratio?Finance
- Which federal law requires lenders to provide a Loan Estimate within 3 business days of receiving a complete loan application?Finance
- A Nevada buyer makes a 10% down payment on a $390,000 home. The lender requires the buyer to pay PMI at 0.5% of the original loan balance annually. What is the monthly PMI cost?Real Estate Math
Key Terms to Know
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.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
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 Nevada Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nevada Quiz →