California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

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What is the cost to the borrower for a VA loan guarantee of 100% of the property's estimated value?

3.00%
2.15%
1.75%
2.75%

The correct answer is: 2.15%

The cost to the borrower for a VA loan guarantee of 100% of the property's estimated value is 2.15%. This is known as the "funding fee" and is applied to the loan to help reduce the overall cost of the loan for the government. Option A, 3.00%, is incorrect because it is typically the funding fee for regular armed forces borrowers with a zero down payment. Option C, 1.75%, is incorrect because it is typically the funding fee for National Guard and Reserve soldiers. Option D, 2.75%, is incorrect because it is typically the funding fee for regular armed forces borrowers with a down payment of at least 10%. Therefore, B is the correct answer as it is the funding fee for regular armed forces borrowers with a zero down payment.