Finance
In South Carolina, which government-sponsored enterprise purchases conforming conventional loans from lenders?
AFHA and VA
BFannie Mae and Freddie Mac✓ Correct
CHUD and USDA
DGinnie Mae and Farmer Mac
Explanation
Fannie Mae (FNMA) and Freddie Mac (FHLMC) are government-sponsored enterprises that purchase conforming conventional loans from lenders on the secondary mortgage market, providing liquidity to lenders.
People Also Study
Related South Carolina Questions
- What is the secondary mortgage market's primary function in South Carolina real estate financing?Finance
- A South Carolina conventional mortgage requires a minimum 20% down payment to avoid:Finance
- In South Carolina, a 'purchase money mortgage' is created when:Finance
- A South Carolina buyer's debt-to-income ratio is 45%. Most conventional lenders will:Finance
- A South Carolina buyer purchases a property 'subject to' the existing mortgage. This means:Property Ownership
- A 'purchase money mortgage' in South Carolina has which priority?Property Ownership
- A South Carolina buyer's agent who helps a buyer commit mortgage fraud by inflating the purchase price is:Agency
- A buyer's agent in South Carolina discovers that the property their buyer client wants to purchase has unresolved boundary issues with a neighbor. The agent's duty is to:Agency
Key Terms to Know
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.
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.
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.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Study This Topic
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 →