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Finance Quiz for Home Buyers

by Maureen McCabe on March 18, 2008

WOSU cautioned Central Ohio home buyers they would need six months of mortgage payments “upfront.”   Reserves?

Buyers Beware

Central Ohio home buyers here’s a True or Falso quiz on FHA financing. This quiz and a quiz for sellers was originally posted on Discover Columbus last fall… there is a question in the quiz about cash reserves.

1. FHA inspects the home for the buyer.

True
False

2. A house that has been owned by the seller less than 90 days is eligible for FHA financing.

True
False

3. FHA financing is only for single family homes and can not be used to buy a 2, 3 or 4 unit home.
True
False

4. FHA financing can not be used to buy a HUD or bank owned property.
True
False

5. An FHA buyer is required to have two months of payments left over in their bank account after closing (known as reserves.)
True
False

Check your answers….

Scroll down

While you are scrolling down… FHA financing is available from Real Living Mortgage. The questions and answers were part of a continuing education class taught by Susan McKnight the branch manager of Real Living Mortgage in Columbus.

The answers to all five questions is false.

For your protection get a home inspection. The appraisal on the property is to protect the lender. An appraisal is about value, not about condition. You can not use FHA financing to buy a house that was flipped (90 days.) You can use FHA financing to buy a multi-family up to 4 units as long as you live in one of the units. You can use FHA financing to buy a bank owned property (a repo, a HUD house.) FHA does not require the buyer to have reserves of cash.

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