Hawaii Pre-Licensing National Practice Exam

Which of the following credit terms can be advertised for real estate without requiring further disclosure?

1. Cash payments accepted

2. FHA financing available

3. Adjustable rate mortgage only

4. Owner financing offered

The correct answer is: FHA financing available

The option indicating "FHA financing available" is the correct choice because it is a specific type of financing backed by the Federal Housing Administration. Advertising FHA financing does not necessitate additional disclosure requirements as long as the advertisement is truthfully presented. This means you can state that FHA financing is an option without having to delve into the specifics of the loan terms or additional contingencies. In contrast, terms such as cash payments accepted, adjustable rate mortgage only, or owner financing offered may require further details to clarify the conditions and implications associated with those arrangements. For instance, cash payments could imply immediate or flexible options, while an adjustable rate mortgage could necessitate disclosures about potential rate changes and the implications for the borrower. Similarly, owner financing would require clarity on the terms of the sale, including the interest rate, payment schedule, and any other applicable conditions. These additional disclosures help ensure that consumers have a clear understanding of their financial commitments and the risks involved in those types of agreements.