Alabama Real Estate Practice Exam

What is placed on the buyers in a VA-insured loan regarding closing costs?

1. A limit

2. A high premium

3. No limit

4. A percentage of the loan amount

The correct answer is: A limit

In a VA-insured loan, the buyers have a limit placed on them regarding closing costs. This means that there is a maximum amount that the buyer will have to pay for closing costs, which can be helpful in keeping overall costs down. Option B, a high premium, is incorrect because it suggests that the buyer is responsible for paying a large fee instead of being limited to a specific amount. Option C, no limit, is incorrect because it implies that the buyer has no restrictions on how much they need to pay for closing costs, which is not the case. Option D, a percentage of the loan amount, is incorrect because it does not account for the specific limit placed on the buyer in a VA-insured loan.