Financing Exam Questions
Financing is one of the most heavily weighted exam topics at 12%, covering the entire lending process from loan types (conventional, FHA, VA, USDA) to federal regulations (RESPA, TILA, ECOA) and the secondary mortgage market. This topic requires understanding both the practical aspects of mortgage origination and the regulatory framework that governs lending practices. Key concepts include loan-to-value ratios, PMI requirements, the difference between mortgage and deed of trust states, and prohibited practices under RESPA. Math questions related to financing — such as interest calculations, LTV ratios, and amortization — appear frequently and represent some of the most concrete, scoreable items on the exam.
What You Need to Know About Financing
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.
- Know the key differences: FHA (3.5% down, MIP), VA (0% down, veterans), Conventional (20% to avoid PMI)
- RESPA prohibits kickbacks; TILA requires APR disclosure; ECOA prevents lending discrimination
- Practice LTV ratio calculations: LTV = Loan Amount ÷ Appraised Value
- Understand the secondary market: Fannie Mae, Freddie Mac, Ginnie Mae roles
Sample Financing Questions
200+ in bankWhich Hawaii rule controls when a lender intends to use power of sale foreclosure on residential property?
A Hawaii licensee is reviewing a candidate asks whether a Hawaii mortgage passes title to the mortgagee. What is the best answer?
Wisconsin recording fees are paid to the:
An appraisal of a Wisconsin dairy farm would most likely use:
Property tax prorations at a Wisconsin closing are typically calculated:
The FHA loan program in Wisconsin allows buyers to purchase with as little as:
Wisconsin's WHEDA (Wisconsin Housing and Economic Development Authority) assists homebuyers by:
Wisconsin foreclosures are:
Wisconsin uses which theory of mortgage law?
In Utah, what is the standard non-judicial foreclosure process under a deed of trust?
After a non-judicial foreclosure sale in Utah, does the borrower have a statutory right of redemption?
A Utah lender requires private mortgage insurance (PMI) on a conventional loan. Under what condition can the borrower request PMI cancellation under the federal Homeowners Protection Act?
Utah is classified as which type of state regarding the security instrument used for most residential mortgage loans?
Under Utah law, which of the following liens generally has the HIGHEST priority?
A Utah property has both a first mortgage and a second mortgage. If the first mortgage is foreclosed, what happens to the second mortgage?
Frequently Asked Questions
What is Financing in real estate?
How many Financing questions are on the real estate exam?
What percentage of the exam covers Financing?
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