Under Texas law, all of the following statements about VA and FHA loans in Texas are correct EXCEPT:
Correct Answer
A) Texas law exempts VA and FHA borrowers from the requirement to use TREC promulgated contract forms
Texas does NOT exempt VA or FHA borrowers from using TREC promulgated forms. All license holders must use TREC forms regardless of loan type. The FHA/VA amendatory clause is used in addition to the promulgated forms, not as a replacement.
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Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
More Tx Specific Financing Questions
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