Before you read
Test yourself first: 5 questions
Question 1 of 5
A primary advantage of a VA-guaranteed loan to an eligible veteran is that it often allows:
Answer: A. VA-guaranteed loans commonly allow eligible veterans to finance 100% of the purchase price with no down payment, since the VA guarantee protects the lender against loss.
Question 2 of 5
A buyer is comparing a fixed-rate loan and an ARM with a lower introductory rate. The lower initial ARM rate offered to attract borrowers is commonly called the:
Answer: C. The teaser rate is the discounted introductory interest rate on an ARM; after the introductory period, the rate adjusts to the fully indexed rate (index plus margin).
Question 3 of 5
A foreclosure conducted through the courts is:
Answer: A. Judicial foreclosure goes through a court; non-judicial uses a power-of-sale clause (common with deeds of trust) without a full lawsuit.
Question 4 of 5
A release clause is most commonly associated with which type of financing?
Answer: A. A release clause is typical of a blanket mortgage that covers multiple parcels; it lets the borrower obtain a partial release of the lien on individual lots, usually as each is sold and a portion of the debt is paid.
Question 5 of 5
The feature that distinguishes joint tenancy from tenancy in common is:
Answer: A. Joint tenancy carries the right of survivorship — a deceased joint tenant's share passes automatically to the survivors, not by will.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
FHA: insured by the FHA, low down payment (~3.5%), mortgage insurance required. VA: guaranteed by the VA for eligible veterans, often 0% down, no PMI. USDA: for rural/eligible areas, can be 0% down. Government programs INSURE or GUARANTEE loans made by approved lenders — they don't usually lend directly.
Common Loan Types: FAQs
Is Common Loan Types on the real estate exam?
Yes. Financing & Lending is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
