Alabama Real Estate Practice Exam

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Prepare for the Alabama Real Estate Exam. Utilize flashcards and multiple-choice questions, each coupled with hints and explanations. Ace your upcoming test!

Practice this question and more.

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.