Conventional Loan Programs

Question 1

What sort of appraisal approach do construction loans use?

Answer 1

The cost approach

Question 2

For a construction loan, the appraisal is considered whaT?

Answer 2

“subject to”

Question 3

For a construction loan. who does The Certificate of Occupancy (CO) come from?

Answer 3

The County Zoning Department

Question 4

A one-time close requires what type of loan?

Answer 4

construction-only loan

Question 5

A two-time close requires what type of loan?

Answer 5

construction-to-permit loan

Question 6

How long is a bridge?

Answer 6

12 months or less

Question 7

What is the MAX LTV without PMI for a FNMA Loan?

Answer 7

80%

Question 8

What is the MAX LTV with PMI for a FNMA Loan?

Answer 8

95-97%

Question 9

What is the MAX DTI for a FNMA Loan?

Answer 9

28/36

Question 10

What automated underwriting system is used for Fannie Mae?

Answer 10

DU

Question 11

What automated underwriting system is used for Freddie Mac?

Answer 11

LP

Question 12

What is the MAX late fee for a Fannie Mae Loan?

Answer 12

5%

Question 13

What is the MAX IPC allowed for FNMA Loans?

Answer 13

4%

Question 14

What does IPC stand for?

Answer 14

interested party contribution