Illinois Real Estate Practice Exam

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Prepare for the Illinois Real Estate Test. Practice with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

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John is purchasing a property using an FHA 203b. More than likely he:

Will be occupying the property as his residence
Will be renting out the property
Will be selling the property immediately
Will be using the property for commercial purposes

The correct answer is: Will be occupying the property as his residence

The FHA 203(b) loan program is specifically designed for individuals who are looking to purchase a home for personal occupancy. This program allows borrowers to secure low down payment financing and is aimed at making homeownership more accessible for those intending to live in the property. Therefore, it is most likely that John, who is using this type of financing, will occupy the property as his primary residence. In contrast, the other options suggest uses for the property that do not align with the purpose of the FHA 203(b) program. Renting out the property would typically require different financing, as many mortgage programs stipulate that properties financed through them must be owner-occupied. Selling the property immediately does not align with the intent of homeownership promoted by the FHA. Lastly, using the property for commercial purposes is outside the scope of the FHA’s residential financing options, as the program focuses on properties that are intended for residential use.