Oregon Real Estate Practice Test 2026 – Complete Exam Prep

The correct choice identifies the various types of financing commonly utilized in Oregon real estate transactions, reflecting the diversity and flexibility available to buyers. Conventional loans, FHA loans, VA loans, and adjustable-rate mortgages are all viable options for purchasers looking to finance their homes.

Conventional loans are standard loans that are not insured or guaranteed by the government, appealing to a broad range of buyers. FHA loans are beneficial for those who may have lower credit scores or limited down payment funds, as they are backed by the Federal Housing Administration. VA loans are specifically designed for veterans and active-duty military personnel and offer advantageous terms, including no down payment and no private mortgage insurance (PMI). Lastly, adjustable-rate mortgages typically offer lower initial rates that can change after a predetermined period, appealing to buyers who might only remain in their homes for a short time or anticipate rates dropping in the future.

Other choices fail to encompass the comprehensive financing options available in the Oregon market. Only cash transactions would limit potential buyers significantly, as many people rely on financing. Fixed-rate loans exclusively would not address the needs of those looking for variable-rate options, and focusing only on poor credit loans does not represent the broader financing strategies available to a majority of buyers. Thus, the chosen answer accurately reflects the