FHA

Question 1

What is the maximum LTV for FHA loans?

Answer 1

96.5%

Question 2

FHA max underwriting ratios?

Answer 2

31% housing

43% total

Question 3

When is MIP required on a FHA loan?

Answer 3

Life of the loan

Question 4

FHA maximum seller concessions?

Answer 4

Seller concessions is limited to 6%

Question 5

FHA: all borrowers must be run through CAIVRS which tells the lender what?

Answer 5

If the borrower has an open FHA loan, default on an FHA mortgage, or government insured student loan. The borrower may not be eligible for another FHA loan.

Question 6

FHA: how soon does occupancy need to occur and how long must it be maintained?

Answer 6

Within 60 days. Must be maintained for a year.

Question 7

FHA: What is the upfront MIP (mortgage insurance premium)? Can it be added to the loan amount?

Answer 7

1.75%

Yes

Question 8

FHA: What is the monthly MIP factor?

Answer 8

.85%

Question 9

FHA ______ mortgage loans made by approved lenders.

Answer 9

Insures

Question 10

What is the minimum down payment and credit score for FHA?

Answer 10

3.5%

580 credit score

Question 11

Sellers may contribute up to __% of the LESSER of the sales price or appraised value towards closing costs.

Answer 11

6%

Question 12

What is an UFMIP and when does it apply?

Answer 12

Up Front Mortgage Insurance Premium

FHA loans. Funding fee that can be financed.

Question 13

What is the late fee on a FHA loan?

Answer 13

4% of the P&I only

Question 14

How do you compute the maximum mortgage amount using the front-end DTI for FHA & Conventional?

Answer 14

Monthly Gross Income x Front Ratio = Max PITI

Question 15

How do you compute the maximum mortgage amount using the back-end DTI for FHA & Conventional?

Answer 15

Monthly Gross Income x Back Ratio - Debt = Max PITI

Question 16

Which PITI do you use for a max mortgage amount, the front-end calculation or back end?

Answer 16

Neither. The LOWER of the two is the answer.