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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Who is likely to be granted a subprime mortgage?

Individuals with excellent credit history
First-time homebuyers
Individuals with poor credit histories
Investors in commercial real estate

The correct answer is: Individuals with poor credit histories

Individuals with excellent credit history are typically able to secure conventional mortgages at favorable interest rates, so they would not need to apply for a subprime mortgage which is generally associated with higher interest rates. First-time homebuyers may actually qualify for special mortgage programs designed specifically for them, making option B incorrect. Investors in commercial real estate would not be looking to purchase a residential property, so option D is also incorrect. Therefore, option C, individuals with poor credit histories, are most likely to be granted a subprime mortgage.