Finance
In South Carolina, a 'reverse mortgage' (HECM) is designed for:
AFirst-time homebuyers with low incomes
BHomeowners age 62 or older to convert home equity into loan proceeds without monthly mortgage payments✓ Correct
CInvestors who want to acquire multiple properties
DUnderwater borrowers seeking debt relief
Explanation
A reverse mortgage (Home Equity Conversion Mortgage - HECM) allows homeowners 62+ to borrow against their home equity without making monthly payments. The loan is repaid when the borrower sells, moves out, or dies. FHA insures HECM loans.
Related South Carolina Finance Questions
- In South Carolina, which government entity regulates state-chartered banks?
- In South Carolina, 'points' paid on a mortgage loan are typically tax-deductible for a primary residence because they represent:
- In South Carolina, a deed of trust involves which three parties?
- In South Carolina, which type of mortgage requires a balloon payment at the end of the loan term?
- What is the purpose of a 'discount point' paid at closing on a South Carolina mortgage?
- A South Carolina buyer obtains a VA loan. Which of the following statements about VA loans is correct?
- In South Carolina, which federal law requires creditors to inform applicants of the factors considered in evaluating their creditworthiness?
- A South Carolina borrower's debt-to-income (DTI) ratio is used to:
Practice More South Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Carolina Quiz →