Virginia Finance
Practice Questions & Answers (2026)

Explanation

Monthly interest = $300,000 × 6% ÷ 12 = $300,000 × 0.005 = $1,500. The first month's payment applies $1,500 to interest.

Explanation

TRID (the TILA-RESPA Integrated Disclosure rule) requires lenders to provide a Loan Estimate within three business days of receiving a completed loan application.

Explanation

LTV = Loan Amount ÷ Appraised Value = $160,000 ÷ $200,000 = 0.80 = 80%. The loan amount is $200,000 − $40,000 = $160,000.

Explanation

Conventional loans with less than 20% down payment require private mortgage insurance (PMI) to protect the lender against default risk.

Explanation

RESPA Section 8 prohibits the payment or acceptance of kickbacks, referral fees, or unearned fees in connection with federally related mortgage loans.

Explanation

Virginia uses a deed of trust (with three parties: borrower/trustor, lender/beneficiary, and neutral trustee) because it permits non-judicial foreclosure by the trustee, which is typically faster than judicial foreclosure through the courts.

Explanation

The APR reflects the true cost of credit, including the interest rate plus certain fees (points, origination fees, mortgage insurance), expressed as an annual rate. It allows consumers to compare loan costs.

Explanation

VA-guaranteed loans are available to eligible veterans, active-duty service members, National Guard members, reservists, and certain surviving spouses. There is no Virginia residency requirement.

Explanation

Lenders typically require PMI when the LTV ratio exceeds 80% (i.e., the down payment is less than 20%). PMI protects the lender against borrower default.

Explanation

The FHA does not lend money directly. Instead, it insures loans made by approved private lenders, reducing the lender's risk and enabling lower down payments (as low as 3.5% for qualifying borrowers).