Finance
In New Mexico, which type of loan is insured by the U.S. Department of Veterans Affairs (VA)?
AA loan made by the VA directly
BA loan made by private lenders and guaranteed (not insured) by the VA against default✓ Correct
CA loan available to all buyers regardless of military service
DA loan requiring 10% down payment
Explanation
VA loans are made by private lenders (banks, mortgage companies) and guaranteed by the VA—not insured. The VA guarantees a portion of the loan, encouraging lenders to offer favorable terms to eligible veterans.
Related New Mexico Finance Questions
- The Truth in Lending Act (TILA) requires lenders to disclose the:
- A New Mexico borrower has a 'debt-to-income ratio' (DTI) of 45%. Most conventional lenders prefer a DTI of no more than:
- A 'hard money loan' commonly used by New Mexico real estate investors is characterized by:
- A New Mexico buyer obtains a loan where the interest rate can change periodically based on a financial index. This is called a(n):
- A negative amortization loan in New Mexico is one in which:
- The secondary mortgage market allows lenders to:
- A borrower has a gross monthly income of $6,000. Using a 28% front-end ratio, what is the maximum monthly housing payment the lender will typically approve?
- In New Mexico, a 'bridge loan' is used when a buyer needs to:
Practice More New Mexico Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Mexico Quiz →