Financing is one of the heaviest national categories. Master these distinctions:
The big four programs
- Conventional: not government-backed; under 20% down usually means PMI (cancels near 78–80% LTV).
- FHA: INSURED, 3.5% down, MIP upfront + annual.
- VA: GUARANTEED for eligible veterans, $0 down, funding fee, no monthly MI.
- USDA: rural areas, income limits, $0 down.
Clauses the exam loves
Acceleration (whole balance due on default), due-on-sale (blocks assumption), subordination (lien order), defeasance/release (lien removed when paid). "Assumption with novation" releases the seller; buying "subject to" leaves the seller liable.
Specialty loans by scenario
Developer with multiple lots → blanket loan (partial release clause). Buying before selling → bridge loan. Furnished condo → package loan. Construction → draws + take-out financing.
Cinna RE has 100+ financing questions plus cheat sheets for every loan family.
