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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Why would a mortgage be considered nonconforming?

It exceeds VA limits
It does not meet Fannie Mae or Freddie Mac standards
It is FHA insured
It requires no down payment

The correct answer is: It does not meet Fannie Mae or Freddie Mac standards

Nonconforming mortgages do not meet the standards set by government-sponsored entities, such as Fannie Mae and Freddie Mac. Option A is incorrect because VA limits are specific to loans for veterans and do not apply to all mortgages. Option C is incorrect because FHA insured loans do meet the standards set by government entities. Option D is incorrect because a nonconforming mortgage may still require a down payment.