Loan Products

Question 1

Conventional Ratios

Answer 1

Housing Expense Ratio - 28%

Total Debt to Income Ration - 36%

Question 2

USDA/Section 502 Ratios

Answer 2

Housing Expense Ratio - 29%

Total Debt to Income Ratio - 41%

Question 3

VA Ratios

Answer 3

Total Debt to Income Ratio - 41%

Question 4

FHA Ratios

Answer 4

Housing Expense Ratio - 31%

Total Debt to Income Ratio - 43%

Question 5

USDA/Section 502 Down Payment

Answer 5

0%

Question 6

VA Down Payment

Answer 6

0%

Question 7

FHA Down Payment

Answer 7

3.5% 580 credit score and up

10% 579 to 500 credit score

Question 8

Conventional Down Payment

Answer 8

3% First Time Buyer
5% Other(subsequent purchase)

You are considerd a 1st time buyer iff you have not owned property in 3 years(36 months)

Question 9

FHA Seller Concessions

Answer 9

6%

Question 10

VA Seller Concessions

Answer 10

4%

Question 11

USDA/Section 502 Seller Concessions

Answer 11

6%

Question 12

Conventional Seller Concessions

Answer 12

90%+ LTV = 3%
75% - 90% LTV = 6%
75% LTV and under = 9%

2% for Investment property

Question 13

Conventional Late Fees

Answer 13

5% P&I

Question 14

USDA/Section 502 Late Fees

Answer 14

4% P&I

Question 15

VA Late Fees

Answer 15

4% P&I

Question 16

FHA Late Fees

Answer 16

4% P&I

Question 17

HOEPA Section 35 - HPML thresholds

Answer 17

First Lien - 1.5%
Jumbo First - 2.5%
Subordinate Liens - 3.5%

Question 18

HOEPA Section 32 - HCML thresholds

Answer 18

First Lien - 6.5% 50k+
First Lien - 8.5% 50k or less
Subordinate Liens - 8.5%

Question 19

HOEPA Section 32 - HCML must include: (BAPS)

Answer 19

No balloon
Ability to repay
No prepayment penalty
Speak to HUD counselor

Can include variable interest rate

Question 20

HOEPA Section 35 - HPML must include: (APE)

Answer 20

Ability to repay
No prepayment penalty(unless in the first 2 years)
Escrow tax & hazard insurance for the first 5 years