Financing: In-Depth Guide for New York
Financing is one of the most heavily weighted exam topics, covering the entire lending process from application to closing. This topic requires understanding different loan types, lending regulations, and financial calculations that agents encounter daily in practice.
Start by mastering the major loan types: conventional loans (conforming and jumbo), FHA loans (lower down payment, MIP required), VA loans (no down payment for eligible veterans), and USDA rural development loans. Know the key requirements for each — FHA requires 3.5% down and mortgage insurance, VA loans require a Certificate of Eligibility, and conventional loans typically need 20% down to avoid PMI.
Federal lending regulations are heavily tested: RESPA (Real Estate Settlement Procedures Act) prohibits kickbacks and unearned fees; TILA (Truth in Lending Act) requires APR disclosure and provides a right of rescission; ECOA (Equal Credit Opportunity Act) prevents discrimination in lending. Understanding the secondary mortgage market is also important — know what Fannie Mae, Freddie Mac, and Ginnie Mae do and how they keep mortgage funds flowing.
For New York-specific regulations, consult the New York exam prep guide and practice with our Financing practice questions.