California Real Estate Practice Exam

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Under which of the following types of financing is a buyer required to purchase term life insurance?

  1. Cal-Vet

  2. Conventional

  3. FHA

  4. VA

The correct answer is: Cal-Vet

This is because under the Cal-Vet program, the buyer is required to have a life insurance policy that will cover the full amount of the loan in case of their death. This requirement does not exist for the other types of financing listed. Option B, conventional financing, may require a buyer to have private mortgage insurance, but not term life insurance. Option C, FHA financing, requires mortgage insurance but not life insurance. Option D, VA financing, does not require any type of insurance.

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