Chapter 4: Mortgage Loan Origination Activities Review Quiz Flashcards
1
Q
The lender usually does NOT allow the source of a borrower’s down payment to be
A
borrowed funds
2
Q
front ratio
A
housing debt divided by gross monthly income
3
Q
geodesic home
A
cost approach
4
Q
Market value
A
most probable selling price
5
Q
correct calculation used to determine gross monthly income
A
hourly rate x hours worked weekly x 52 ÷ 12
6
Q
minimum number of comps
A
3
7
Q
installment debt
A
10 months
8
Q
FHA loan guidelines ratios
A
31% housing ratio and 43% total debt-to-income ratio
9
Q
Section 502 loans
A
USDA Rural Development
10
Q
A closing agent is NOT responsible
A
issuing the final loan approval
11
Q
maximum LTV allowed for VA loans
A
100%
12
Q
UFMIP is charged
A
FHA loans
13
Q
hypothecation
A
property as collateral without surrendering use or possession
