Finance
In South Carolina, what is 'subordinate financing' in residential lending?
AA loan that has first lien priority
BA second mortgage or junior lien that is subordinate (lower in priority) to the first mortgage✓ Correct
CA government loan subordinated to a private loan
DA type of lease financing
Explanation
Subordinate financing refers to second mortgages, HELOCs, or other junior liens that are subordinate in priority to the first mortgage. If the property goes to foreclosure, the first mortgage is paid before subordinate liens.
Related South Carolina Finance Questions
- The Truth in Lending Act (TILA) requires lenders to disclose the:
- Which of the following types of mortgages allows a borrower to make interest-only payments for a set period, after which they must pay principal and interest?
- What is the Home Mortgage Disclosure Act (HMDA) designed to do?
- A South Carolina borrower who falls behind on mortgage payments and works with the lender to temporarily reduce or suspend payments is using which loss mitigation option?
- In South Carolina, which law prohibits discrimination in mortgage lending based on race, color, religion, national origin, sex, marital status, or age?
- What is a 'bridge loan' commonly used for in South Carolina real estate transactions?
- A South Carolina buyer uses a 'piggyback loan' (80-10-10 structure). This means they:
- A 'conforming loan' in South Carolina is one that:
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 →