Arkansas Real Estate License Arkansas Real Estate License Property Valuation and Financing Questions and Answers 2

Question 1

A buyer is purchasing a home in Little Rock for $210,000 with a 90% LTV conventional loan. What is the required down payment?

Accepted Answer

$21,000

Answer

$18,900

Answer

$19,500

Answer

$25,200

Question 2

Under Arkansas law, which approach to value is most commonly used when appraising a single-family residence?

Accepted Answer

Sales comparison approach

Answer

Income capitalization approach

Answer

Cost approach

Answer

Gross rent multiplier approach

Question 3

An Arkansas property has an annual net operating income of $36,000 and the investor requires an 8% capitalization rate. What is the estimated value using the income approach?

Accepted Answer

$450,000

Answer

$360,000

Answer

$288,000

Answer

$500,000

Question 4

Which federal regulation requires lenders to provide a Loan Estimate within three business days of receiving a mortgage application?

Accepted Answer

TILA-RESPA Integrated Disclosure (TRID)

Answer

Equal Credit Opportunity Act

Answer

Community Reinvestment Act

Answer

Home Mortgage Disclosure Act

Question 5

A property in Fayetteville was purchased for $175,000 five years ago. The replacement cost of improvements is $200,000 with $30,000 in accrued depreciation and the land is valued at $50,000. What is the property value using the cost approach?

Accepted Answer

$220,000

Answer

$175,000

Answer

$200,000

Answer

$250,000

Question 6

In Arkansas, what type of mortgage clause prevents a buyer from assuming the seller's existing loan without lender approval?

Accepted Answer

Due-on-sale clause

Answer

Defeasance clause

Answer

Subordination clause

Answer

Prepayment penalty clause