Chapter 11 Vocab

Question 1

Certificate of eligibility

Answer 1

VA document that certifies a Veteran is eligible for a VA loan

Question 2

Direct endorsement letter

Answer 2

Lenders authorized by the FHA to fully underwrite their own FHA loan application

Question 3

Discount point

Answer 3

Entitlement

Question 4

FHA 251 Adjustable program

Answer 4

30 year adjustable rate mortgage

Question 5

FHA Title 1 program

Answer 5

• Designed to help homeowners finance “light repairs”

- up to 25k

Question 6

GI Bill

Answer 6

Federal legislation VA loan insurance

Question 7

Homebuyers Summary

Answer 7

FHA document that must be presented to the borrower by the lender.
-List all property defects

Question 8

Indemnity Obligation

Answer 8

Obligation by a VA borrower to pay back the loan. even if they default

Question 9

203b Fixed Rate

Answer 9

-minimum downpayment of 3.5% of the sales price is required

Question 10

203K purchase and rehab

Answer 10

-Was developed to help revitalize communities and neighborhoods.

Question 11

Valuation condition form

Answer 11

FHA document

-Requires appraiser to report all property defects

Question 12

Entitlement

Answer 12

Maximum guarantee amount that the VA will provide for a veterans home loan