FHA — insured by FHA; low down (~3.5%); mortgage insurance
Before you read
Test yourself first: 5 questions
Question 1 of 5
Compared with a conventional loan requiring 20% down, a key feature of both FHA and VA loans is that they are:
Answer: B. FHA loans are government-insured and VA loans are government-guaranteed; this federal backing reduces the lender's risk and supports lower down payments.
Question 2 of 5
Which federal law requires lenders to disclose the true cost of credit, including the annual percentage rate (APR) and finance charges, to consumers?
Answer: A. The Truth in Lending Act, implemented by Regulation Z, requires lenders to disclose the cost of credit, including the APR and total finance charges, so borrowers can compare loans.
Question 3 of 5
The Truth in Lending Act (Regulation Z) requires lenders to disclose:
Answer: A. Reg Z requires clear disclosure of the annual percentage rate (APR) and finance charges so borrowers can compare the true cost of credit.
Question 4 of 5
Which of the following is a key distinction of Ginnie Mae compared to Fannie Mae and Freddie Mac?
Answer: B. Ginnie Mae is government-owned, and its mortgage-backed securities are backed by the full faith and credit of the U.S. government, unlike the GSEs Fannie Mae and Freddie Mac.
Question 5 of 5
When a dual agent represents both parties, which duty is necessarily limited compared to single agency?
Answer: B. A dual agent cannot give undivided loyalty or full advocacy to either party because the same agent serves both, so loyalty is necessarily limited.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Conventional — not gov-backed; <20% down usually needs PMI
- FHA — insured by FHA; low down (~3.5%); mortgage insurance
- VA — guaranteed for eligible veterans; often 0% down; no PMI
- USDA — eligible rural areas; can be 0% down
- Gov programs INSURE/GUARANTEE loans — lenders still lend
Loan Types — Quick Compare: FAQs
Is Loan Types — Quick Compare 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.
