Question

How does the VA cover it’s budgetary needs.

Question 24 options:

	With taxpayer monies.
	By charging a funding fee.
	By charging an interest rate slightly higher that prevailing market rates.
	By selling tax-free government bonds

Which of the following best describes an installment sales contract (land contract)?

Question 25 options:

	It is an installment sales agreement granting an equitable title to property.
	It is a conveyance of title to property.
	It is the same as a mortgage.
	It is an option to acquire property

A mortgage design that allows a lender to change the interest rate on a loan at periodic intervals during its term is called

Question 26 options:

	a graduated payment mortgage.
	a changeable rate mortgage.
	a fluctuating rate mortgage.
	an adjustable rate mortgage.

All of the following are some of the more important principles of appraising EXCEPT:

Question 27 options:

	Arm’s length transaction
	Supply and Demand
	History of tax valuations
	Highest and best use

Answer 1

Answer 24:- By charging a funding fee

( Explanation - Veteran Affairs provide loans on which it charges funding fee from the borrowers and it is a one time fee and this is taken to ensure that borrower doesn't default)

Answer 25:- It is an installment sales agreement granting an equitable title to property

( Explanation - Under installment sales contract, buyer pays installments of the purchase price for a specified duration. The purchaser under installment contract acquires equitable title. Once all the installments are paid, legal right comes to the buyer.)

Answer 26:- an adjustable rate mortgage

( Explanation - Adjustable rate mortgage or Variable rate mortgage allow the lenders to change the interest rate on a loan at periodically during its term based on an index.)

Answer 27:- History of tax valuations

( Explanation - Principles of appraising of property includes :-

• Arm’s length transaction
• Highest and best use
• Supply and Demand

and much more but does not include history of tax valuations)