A Virginia loan in 2026 goes to an individual for household purposes and is secured by a residence. Does this household-purpose loan fall within the mortgage-loan definition?
Correct Answer
A) A mortgage loan: made to an individual for personal or family use
A mortgage loan means a loan made to an individual the proceeds of which are to be used primarily for personal, family or household purposes and which is secured as the definition provides. Other choices: purchase is not the only qualifying use; no dollar floor appears; and the definition turns on the purpose of the proceeds. Source: Va. Code § 6.2-1600
Why This Is the Correct Answer
A mortgage loan means a loan made to an individual the proceeds of which are to be used primarily for personal, family or household purposes and which is secured as the definition provides. Other choices: purchase is not the only qualifying use; no dollar floor appears; and the definition turns on the purpose of the proceeds. Source: Va. Code § 6.2-1600
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