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1. The “Perfect Storm Opportunity” for 203k growth includes:
a) Distressed properties needing renovation
b) A shortage of renters in the market
c) Easy mortgage money availability
d) All of the above

2. More than 80% of all the homes in America were built before:
a) 1812
b) 1963
c) 1990
d) 2005

3. The use of FHA financing increased substantially from 2005 to 2009.
a) True
b) False

4. As the 203k loan program is used to renovate more homes in more communities:
a) The inventory of distressed properties will be reduced
b) Employment opportunities will be created
c) More home buyers will take advantage of great deals on homes
d) All of the above

5. The RE-buildUSA project portal is accessible to consumers allowing them to directly connect with home inspectors and contractors to coordinate their 203k projects.
a) True
b) False

6. The 203k loan is offered in two different versions designated by the FHA as:
a) Primary and Secondary
b) Standard and Streamline
c) Contingency and Holdback
d) Intergalactic and Extraterrestrial

7. The 203k is an excellent vehicle to be used by investment groups for the purchase and renovation of large scale projects including retail shopping centers, large residential planned unit developments, amusement parks and bowling facilities.
a) True
b) False

8. A mixed-use building is one that:
a) Combines natural and man-made materials
b) Provides both male and female bathing facilities
c) Is owned by investors of varying cultural backgrounds
d) Combines residential with retail or commercial uses

9. FHA loans must not exceed established limits that:
a) Are consistent from coast-to-coast
b) Are tied to an annual cost-of-living adjustment
c) Vary from area to area relative to the cost of housing
d) Were based on housing costs in 1934

10. Renovation on a 203k project must begin no later than 30 days after closing and must be competed within 6 months.
a) True
b) False

11. A "cost plus" or "time and material" contract:
a) Is not allowed on 203k projects
b) Is the preferred method of buyer/contractor relationship
c) Guarantees a fixed price to assure renovation costs will not be exceeded
d) Allows lenders to close 203k loans much more quickly and easily

12. “Identity of Interest” refers to a criminal background check that must be done on all contractors prior to beginning renovation.
a) True
b) False

13. The 203k is a great option for the purchase of brand new homes that have never been completed and occupied.
a) True
b) False

14. The conditions and requirements of the Standard and Streamline versions of the 203k are identical except for the allowable amount of renovation costs.
a) True
b) False

15. The Streamline 203k allows the following:
a) Major remodeling and structural repairs
b) Renovation that requires engineering and architectural drawings
c) Landscaping and other site improvements
d) Repairs to well and septic systems

16. 203k transactions must follow a carefully outlined, predetermined process flow that is identical from lender to lender and project to project.
a) True
b) False

17. A term Dennis suggests we use to describe our evaluation of the current value of a property in contrast to its expected value when renovation is completed is:
a) Competitive Construction Evaluation
b) Renovation Value Analysis
c) Comparative Project Estimate
d) S.W.A.G

18. The home inspector will prefer that utilities are not turned on to minimize the possibility of electric shock or water leaks to occur during the inspection process.
a) True
b) False

19. The appraisal is scheduled after the preparation of renovation bids by the contractor to allow the appraiser to more accurately estimate the value of the home following renovation.
a) True
b) False

20. In a Streamline 203k, contractor payments must be made in a series of five equal payments prior to the completion of the renovation work..
a) True
b) False

21. A fee charged by the lender for the management of the renovation escrow, inspections and the disbursement of funds to contractors is called:
a) Supplemental Origination Fee
b) Lenders Management Appropriation
c) FHA Mortgage Insurance
d) Cost Plus Management Fee

22. An FHA-approved 203k Consultant can provide the following service:
a) Feasibility Study
b) Property inspection
c) Scope of Work write up
d) All of the above

23. 203k Consultants can charge fees at whatever rates they feel appropriate.
a) True
b) False

24. The HUD 203k Maximum Mortgage Worksheet:
a) Provides an overview of all costs relative to the 203k loan
b) Stipulates the details of the home owner's responsibilities
c) Is used to confirm completion of the project to allow final draw disbursement
d) All of the above

25. The 203k Self-Help Agreement relates to:
a) An option for the homeowner to get paid as a laborer on the project.
b) The requirement that the real estate broker provide assistance in the disbursement of funds through the renovation process
c) The inclusion of additional funds in the renovation escrow to allow for changes and additions to the Scope of Work
d) None of the above

26. The Energy Efficient Mortgage allows approved energy saving improvements to be financed into the 203k mortgage at 70% of the cost of the improvements
a) True
b) False

27. The RE-buildUSA Streamline 203k Renovation Checklist is helpful for:
a) Organizing the possible renovation activities into three categories
b) Prioritizing activities relative to importance
c) Finalizing the Scope of Work for bidding purposes
d) All of the above

28. A HERS energy rating can be performed by all FHA approved home inspectors, appraisers and 203k consultants.
a) True
b) False

29. 203k Target Markets include:
a) First time buyers
b) Move up buyers
c) Occupant investors
d) All of the above

30. In identifying our target markets, the term that relates to what people value and how they think is:
a) Demographics
b) Psychographics
c) Search corridor
d) Migration patterns

31. Investors who are looking to buy and flip properties are one of our most important target markets for 203k business.
a) True
b) False

32. The most important thing for a salesperson to remember is to focus on winning customers’:
a) Approval
b) Respect

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