Alabama Real Estate Practice Exam

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Master your Alabama real estate exam with our comprehensive practice test. Tailored feedback, expert tips, and up-to-date questions to ensure your success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What type of mortgage is typically made by a bank or savings and loan association?

VA-insured
Conventional Mortgage
Conforming mortgage
Nonconforming mortgage

The correct answer is: Conventional Mortgage

A VA-insured mortgage is specifically for veterans and not commonly provided by banks or savings and loan associations. So, this option is incorrect. A conforming mortgage refers to a loan that meets certain size and other guidelines set by Fannie Mae and Freddie Mac. While banks and savings and loan associations may offer conforming mortgages, it is not a specific type of mortgage and therefore, this option is also incorrect. A nonconforming mortgage, also known as a jumbo mortgage, is a loan that exceeds the limits set by Fannie Mae and Freddie Mac. This type of mortgage is typically not offered by traditional banks or savings and loan associations, making this option incorrect. The correct answer is B Conventional Mortgage, as it is the most common type of mortgage offered by banks and savings and loan associations. This type of mortgage typically requires a down payment and has a fixed or adjustable interest rate.