Conforming Loan Programs Flashcards
Are conventional loans always conforming?
No
Are conforming loans always conventional?
Yes
What is the min and max limit for a conforming loan
Min is 726,200
Max is 1,089,300
What is a jumbo loan?
Exceed loan limit and have higher rates and are considered nonconforming
What is a conforming loan
Loan that conforms to FNMA and FHLMC standards
Which of the following best describes a 2nd mortgage?
a. a conventional mortgage that is conforming
b. a conventional mortgage that is nonconforming
c. a conforming loan that is nonconventional
d. a nonconforming loan that is nonconventional
b
Non traditional loan?
Anything other then a 30 yr fixed rate loan
Features of conforming loan
1003- Uniform residential loan app URLA
1008- underwriting and transmittal summary UATS
AUS - automated underwriting systems AUS
Ratios for conforming loan
Qualifying ratio = manual underwriting 28%36%
Front end ratio is PITI (principal , interest , taxes and insurance, plus HOA of new loan
Back edn ratio - piti +HOA + any debt on credit bureau
What does FNMA have?
Desktop originator and used by brokers
Desktop underwriter and used by lenders
What does FHLMC have?
Loan product advisor - used by lenders and brokers
What is form 4506T
request for copy of tax transcript used to verify income
What is form 8821
Tax info authorization form
- What are the FNMA/FHLMC guidelines that are required for a borrower?
Must occupy property within 60 days of purchase when buying as owner occupied
What is max seller concession on a conventional loan?
9%
