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Unformatted text preview: ns must be written to FHA specifications. • HUD/FHA – These loans are made by approved institutions and mortgage companies and insured by the federal government. These loans must be written to FHA specifications. DVA – These loans are made by approved institutions and mortgage companies and guaranteed by the federal government. They must be written to DVA specifications. Cal–Vet – These loans are made by the State of California, Department of Veterans Affairs. They are for California veterans only, and the borrower must meet DVA's strict requirements, at the time the loan is made and after. Government backed loans (FHA/DVA/Cal–Vet) will be discussed in details in Chapter 5. Conventional – Conventional loans are usually written conforming to FNMA–FHLMC (Fannie Mae–Freddie Mac) practices and limitations, thus also called “conforming loans”. These loans are made by institutions and mortgage companies with the expectation of selling the loans to either FNMA or FHLMC. While other conventional loans made without government underwriting are termed “nonconforming.” They may be written without conforming to the specifications and limitations of FNMA–FHLMC. If made for amounts in excess of the “conforming” limitations, they are sometimes referred to as “jumbos.” • • Dynasty School (www.dynastySchool.com) 1-11 REAL ESTATE FINANCE
Conventional loans will be discussed in details in Chapter 6. CHAPTER QUIZ
1. Knowledge of real estate finance is not necessary for the person who plans to specialize in: A. B. C. D. 2. Property management Appraisal Loan brokerage None of the above Government influence in real estate financing is at all levels: A. B. C. D. Becoming more involved Becoming less involved Stagnant None of the above 3. Prior to the mid–1930s, most real estate financing was: A. B. C. D. Fully amortized over the life of the loan Partly amortized with a large balloon payment A straight note payable interest–only, with the original loan payable in full at end of the note period None of the above 4. Which of the following is not a federal government agency established for real estate financing? A. B. C. D. Federal Housing Administration Federal Home Loan Bank Board Federal Bank Board Administration Federal National Mortgage Association 5.
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10