Finance
An Oklahoma borrower with a 780 credit score, 20% down payment, and stable income would most likely qualify for:
AOnly FHA financing
BConventional financing at favorable interest rates✓ Correct
CUSDA financing only
DSubprime mortgage products
Explanation
A borrower with a 780 credit score, 20% down, and stable income presents an excellent credit profile and would qualify for conventional (conforming) financing at favorable rates, without needing government-backed loan programs.
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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.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
AmortizationThe 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.
Math Concepts
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