West Virginia Finance
Practice Questions & Answers (2026)
Finance questions on the West Virginia real estate exam cover mortgage types, loan-to-value ratios, qualifying ratios, and federal lending laws. The West Virginia Real Estate Commission tests both the mechanics of real estate financing and the regulatory framework — particularly RESPA, TILA (Truth in Lending), and the TRID rules that govern loan disclosures. West Virginia candidates often lose points on financing questions because they understand the concept but miss the specific numerical thresholds or disclosure timing requirements that appear on the WV exam. Pay particular attention to ARM vs. fixed-rate mortgage distinctions, the calculation of LTV ratios, and what information must appear in specific disclosure documents.
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West Virginia Finance — Practice Questions & Answers
117 questions on Finance from the West Virginia real estate question bank. First 10 are free — sign up to unlock all 117.
Q1. A West Virginia buyer obtains a $250,000 FHA loan. What is the minimum down payment required?
Explanation
FHA loans require a minimum down payment of 3.5% for borrowers with a credit score of 580 or higher. On a $250,000 purchase, the minimum down payment would be $8,750.
Q2. A West Virginia buyer's loan is for $180,000 at 6.5% annual interest. What is the monthly interest for the first payment?
Explanation
Monthly interest = $180,000 × 6.5% ÷ 12 = $180,000 × 0.005417 = $975. The first month's interest portion of the payment is $975.
Q3. In West Virginia, a deed of trust differs from a mortgage in that a deed of trust involves:
Explanation
A deed of trust involves three parties: the trustor (borrower) who grants title to the trustee, the lender (beneficiary) who holds the note, and the neutral trustee who holds bare legal title until the loan is repaid.
Q4. The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating based on:
Explanation
ECOA prohibits creditors from discriminating against applicants based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance in any aspect of a credit transaction.
Q5. A seller in West Virginia 'carries back' a loan to help the buyer purchase the property. This is called:
Explanation
A purchase money mortgage (or seller financing) occurs when the seller extends credit to the buyer, acting as the lender. The buyer makes payments directly to the seller rather than a bank.
Q6. Under the Truth in Lending Act (TILA), a lender must disclose the Annual Percentage Rate (APR) to a borrower within:
Explanation
TILA/RESPA Integrated Disclosure rules require lenders to provide the Loan Estimate (which includes the APR) within 3 business days of receiving a complete loan application.
Q7. A West Virginia borrower has a gross monthly income of $5,000. Lender guidelines set a maximum housing expense ratio of 28%. What is the maximum allowable monthly PITI payment?
Explanation
Maximum PITI = Gross monthly income × Housing ratio = $5,000 × 28% = $1,400.
Q8. In West Virginia, a mortgage that adjusts its interest rate periodically based on a financial index is called a(n):
Explanation
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically (e.g., annually) based on a specified index, such as the SOFR or the 1-year Treasury bill rate.
Q9. Points paid on a mortgage loan in West Virginia represent:
Explanation
One discount point equals 1% of the loan amount paid upfront to the lender in exchange for a lower interest rate. Paying points is essentially prepaying interest.
Q10. Private mortgage insurance (PMI) is typically required in West Virginia when:
Explanation
PMI is required when the LTV ratio exceeds 80% (i.e., the down payment is less than 20%). PMI protects the lender in case of borrower default.
Q11. The debt-to-income (DTI) ratio used by West Virginia lenders compares:
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