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American_Bankers_Association

CTFA · Question #243

_____________ is a financing made available by a builder or a seller to a potential new home buyer at well below market interest rate, often only for a short period, is called:

The correct answer is A. Buydown. See the full explanation below for the reasoning.

Investment Management

Question

_____________ is a financing made available by a builder or a seller to a potential new home buyer at well below market interest rate, often only for a short period, is called:

Options

  • ABuydown
  • BPrerequisite
  • CFHA
  • DGrowing equity mortgage

How the community answered

(16 responses)
  • A
    75% (12)
  • B
    6% (1)
  • C
    13% (2)
  • D
    6% (1)

Topics

#buydown#below-market interest rate#seller financing#mortgage subsidy

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