General Knowledge 2 Flashcards
Housing expense on the borrowers principal residence, all revolving charge accounts, installment loan debt’s and lease payments are all examples of what?
Liabilities
If installment loan debt with less than _____months left on it, then the underwriter does not have to consider it in the borrower debt to income ratio.
10
Real estate loans, HELOCS, alimony and child support, maintenance payments and all other debts of recurring nature are examples of what?
Liabilities
Our utility bills and cell phone payment is considered liabilities?
No
Are insurance payments, tax payments and union dues considered liabilities?
No
Are voluntary deductions on paystub’s such as 401(k) contributions, considered liabilities?
No
Debt to income qualifications on a conventional loan.
28/36
Debt to income qualifications or an FHA loans.
31/43
Debt to income qualifications on VA loans.
Back end DTI of 41% with residual income calculation
Debt to income qualifications for a USDA loan.
29/41
Another term for the “Front End” DTI
Housing expense
The ______ _____ On DTI is only the borrowers housing expense compared to their income.
Front end
Another term for back end of DTI.
Total
The ______ ______ on DTI is all of the borrowers liabilities compared to their income.
Back End
Loan to value equation.
Take the loan amount and divide it by the borrowers purchase price or the properties appraised value, which ever is lower
If you take the loan amount and divide it by the borrowers purchase price or the properties appraised value, whichever is lower.
What does this equation equal?
LTV Or loan to value
What are the three bureaus that a credit score can be pulled from?
Experian, Equifax and Transunion
In a situation where a borrower is qualifying for a mortgage the lender is going to pull a __________ meaning they’re going to pull the report and scores from all three bureaus.
Tri-merge
Generally the underwriter is going to take the lowest __________ credit score of the borrowers.
Middle
When an underwriter takes the lowest middle credit score of the borrowers this makes up what score?
Qualifying
Credit scores can range from ______ to _________.
300-850
What are the four things included in your credit score?
- Payment history
- Amounts owed
- Credit mix
- New credit
When it comes to credit scores, what does credit mix mean?
How many different types of accounts you have.
When it comes to credit scores, what does new credit mean?
The age of your credit, have you recently open new credit, etc.
With a conventional loan, the borrower is prohibited from obtaining a loan if they’ve had a foreclosure reported on their credit with in the previous ____ years.
7….157
