Diana is a real estate agent working with a veteran who wants to use his VA loan benefit. The client is looking at properties in Manhattan and asks which type of property would be eligible for VA financing. What should Diana tell him?
Correct Answer
D) Only condominiums are eligible because they involve real property ownership
VA loans can only be used for real property purchases. Condominiums involve real property ownership (fee simple title with a deed), making them eligible for VA financing if the project is VA-approved. Cooperatives involve personal property (shares), making them ineligible for VA loans.
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Related Topics & Key Terms
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Related Concepts
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
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