We are so excited that you are choosing to challenge your understanding of residential rehab loans and test the education you have received on this valuable tool to help you assist more buyers and sellers achieve their homeownership goals.
Please note that some of the questions will use the term “borrower” instead of buyer or seller or homeowner. This is because the term “borrower” is used in the mortgage industry to refer to all types of mortgagors. It is one more reminder of the versatility of these types of loans.
Good luck and we look forward to issuing you a certification as a NAFHAC Residential Rehab Sales Specialist.
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We want you to be successful as a NAFHAC Certified Residential Rehab Specialist. Please review the responses shared with you when the answer you selected was incorrect. If you would like additional assistance please contact our office at 855-4-NAFHAC or your local NAFHAC member consultant (https://findaconsultant.com).
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There are rehab loan options available with all of the commonly used mortgage programs (i.e. FHA, VA, Fannie Mae, Freddie Mac)
The advantage of renovation loans for real estate sales agents is…
A condominium project might consist of four buildings each containing six units, for a total of 24 units in the project and, thus, a renovation of one of these units would be eligible for Section 203(k).
It is acceptable for a 203k loan to purchase a dwelling on another site, move it onto a new foundation on the mortgaged property and rehabilitate it.
Within how many months after purchasing a home can a homeowner use the 203(k) to refinance the property and make repairs or renovations?
According to the most current publication on FHA 203k rehab loans- 4000.1, what percentage of the dwelling can be used for nonresidential purposes?
For the 203(k) program, under what circumstances (if any) can a contractor receive funds in advance of performing work?
What is the maximum contingency allowed on an FHA 203k rehab project?
What is the maximum number of days between draw inspections?
The title of the HUD publication that provides the most information on 203(k) Rehab Mortgage Program is 4240.4 Rev 2.
Which type of rehab loan allows for a non-occupant investor to purchase a property and have repairs completed as part of the loan?
Any seller of a home with deferred maintenance or other issues should consider a Pre-Listing Feasibility Assessment from an FHA Consultant.
What is the maximum number of dwelling units that can be in the building being purchased with the 203(k) rehab mortgage?
What is the median age of US homes?
Choose A B C or D
With an FHA Rehab (203k) loan a home buyer can get a mortgage with as little as 3.5% downpayment and credit scores as low as 580.
If the cost of the rehabilitation increases during the rehabilitation period beyond the amount of the escrowed rehab costs,can the renovation mortgage amount be increased to cover the additional expenses?
FHA 203k rehab loan can be used to refinance a home that has been gutted and is currently vacant.
Under what conditions can a renovation loan be used to rehab new construction.
A borrower can use both the EEM and the 203k rehab loan on one purchase/refinancing mortgage
All rehab mortgages require the services of a certified consultant.
Describe how a borrower can get the utilities tested on a HUD owned home that has been winterized.
What is the maximum rehab amount of a VA Rehab Loan?
Like with the FHA 203k Rehab Loan, in a Fannie Mae HomeStyle loan, all HUD minimum property standard deficiencies must be included in the rehab amount.
Choose the most correct answer:
With a 203k Loan- In a mixed-use, multi-family dwelling:
Select the most correct answer:
Which of the following are valid allowable fees?
a. Rehab Consultant Service Fees
b. Termite/Radon Test
c. Architectural Drawings
d. Underground Sewer Line Test
e. Allergen testing (dust, bed bugs, pet)
A 203k rehab loan can be completed with no contractor, the borrower can do work themselves.
What does an FHA Certified Rehab Consultant do?
Extra Credit Question: (worth 3 points)
There is a program that allows certain professionals and public servants to purchase HUD homes for ½ of the list price. This program is ideal for a 203k rehab loan and creates “good neighbors” where most needed. What is it called?