FHA: The Basics- Test your knowlege Part 2

11) FHA allows the seller to pay a maximum of 6% seller contribution towards closing costs and pre-paids.

True or False

12) The monthly mortgage insurance (M/I) for a maximum financed FHA loan on a 30 year term is 1.15%.

True or False

13) Unlike VA and USDA, FHA does not charge a funding fee.

True or False

14) FHA only charges a monthly mortgage insurance premium of .50% for loans of 15 years and less.

True or False

15) The number one issue that slows down the appraisal process is the failure of the agents to make sure the power and water is turned on.

True or False

16) FHA does not allow the following item(s) to be included or listed in the contract and sales price:

A)Refrigerator     B)Lawn Mower     C)Chandelier     D)Stove     E)C&D     F)A&B

17) FHA loans are ASSUMABLE.

True or False

18 ) Some FHA loans can be refinanced without the need for an appraisal.

True or False

19) If the borrower who is obtaining an FHA loan changes lenders in mid process, the new lender MUST get a full appraisal.

True or False

20) Due to ordering/obtaining case #'s, FHA loans take longer to close than conventional loans.

True or False


Answers:
11)True     12)False(1.25%)     13)False(1.75%)     14)True     15)True     16)F     17)True     18)True     19)False (appraisal must be transferred with case #)     20) False