Loan Products Flashcards
FHA requires __ months of ownership before reselling.
3 months
FHA borrowers must have a valid ________.
Social Security Number
In an FHA loan — the upfront mortgage insurance premium (UFMIP) for a 15-year and 30-year purchase and refinance transactions are ___% of the loan amount.
1.75%
FHA loans have a minimum down payment of ____ with a credit score of _______. (The down payment can be a gift from a relative.)
3.5% / 580 or above
In a FHA loan, Sellers may contribute up to __% of the lesser of the property’s sales price or the appraised value toward closing costs.
6%
In order to be approved for an FHA loan, borrowers must have a front end ratio of __% and a back end ration of __%.
31% / 43%
On a FHA Loan, if credit score is between 500-579, the minimum down payment is __%.
10%
FHA loans have a __% late fee of the P and I only.
4%
The Federal Housing Administration (FHA) is a government agency within the ________________.
Department of Housing and Urban Development (HUD)
FHA loans have a required ________________ and a ________________ regardless of the down payment amount.
Up Front Mortgage Insurance Premium (UFMIP) / Monthly Insurance Premium (MIP)
The FHA provides __% insurance to its approved lenders.
100%
Borrowers with FHA loans must establish occupancy of the property as their principal residence within ______ of signing a security instrument and live in the house for at least ______.
60 days / 1 year
The Department of Veteran’s Affairs (DVA) partially ___________ VA loans.
guarantees
VA loans are ___________ which means they require no _____________.
100% financed / down payment
VA loans require no _________________.
monthly insurance premium
VA loans look for a DTI that does not exceed ____.
41%
VA loans do require a one time non-refundable variable ____________ at closing. This is waived for disabled veterans and surviving spouses.
funding fee
VA loans require a veteran to produce a _________________, which shows the amount of his entitlement.
Certificate of Eligibility (COE)
On a VA Loan a __________ (commonly called Discharge Papers or Report of Separation) is issued by the Department of Defense – is required if the Veteran has been discharged.
DD-214
On a VA Loan a _________ for Army or Air National Guard reservist with six or more years of reserve service – required if currently “active”.
NGB 22/23
On a VA Loan, ______________ are required for members of the military currently on active duty with qualifying services remaining.
General Orders
Two eligible veterans may ________ their VA Benefits to qualify for a larger loan.
combine
A VA appraisal is known as a __________________. It can also be called a __________________.
Certificate of Reasonable Value (CRV) / Notice of Value (NOV)
A VA loan is ___________; it does not have a due-on-sale clause.
assumable
VA loans have a ___ late fee (of the P&I only).
4%
For VA loans, the lender may also charge a flat fee, up to ___ of the loan amount, to cover the lender’s costs.
1%
Seller concessions exceeding ___ of the established reasonable value of the property are unacceptable. Max seller concession on a VA loan is ___.
4% / 4%
The typical funding fee for a VA loan is ____ of the purchase price of the home.
2.3%
The _______ sets the interest rate on VA loans, not the VA.
lender
The maximum term for a VA loan is _______, and the late fee is ____ of the monthly P&I.
30 years / 4%
The VA doesn’t limit the price a veteran can pay for a house – but it does limit the amount it will guarantee to ____ of the purchased price or value - whichever is less.
25%
Lender may also charge a flat fee, up to ___ of the loan amount, to cover the lender’s costs.
1%
If legally married, spouse’s income may also be considered for qualification purposes: Non-married co-borrower is not allowed on a VA loan unless he or she is an ___________ who will occupy the home.
eligible veteran
An entitlement is the maximum amount that the VA will “guarantee” on behalf of a Veteran. Veterans Entitlement is based on ___ of the County Limit, up to a maximum of _________. If an entitlement is insufficient, a cash down payment may allowed for the balance.
25% / $127,600
USDA loans are partially ___________ by the US government, allow for ____ financing, have a one-time ___________ that is paid at closing, and have no required _______________.
partially guaranteed / 100% / funding fee / monthly mortgage insurance
The USDA loans are __________, __________, ________, ____________ loans.
lower-income / owner-occupied / 30 year / fixed-rate
USDA home loans are also known as _____ loans or _______________ loans.
farm / rural development
USDA home loans are also known as ___________ loans.
Section 502
USDA loans are funded by the _________________.
Department of Agriculture
There is no ____________ on USDA loans.
prepay penalty
USDA Mortgages do not have PMI, but instead have an upfront ______________ that is meant to cover any losses incurred by borrowers who may default.
premium/funding fee
Guaranteed loan applicants may have an income of up to ____ of Area Medium Income (AMI).
115%
Debt Ratios: USDA utilizes debt-to-income ratios of ___ for housing and ____ for total debt.
29% / 41%
The late fee for a USDA loan is ___ of the monthly P and I.
4%
Conventional loans are not _________ or _________ by any government authority (e.g. FHA, VA or USDA)
insured / guaranteed
The qualifying ratios for a conventional loan are: Housing Expense Ratio - ___, Total Debt to Income Ratio - ___.
28% / 36%
On a conventional loan, PMI is required when the borrower ____________________.
puts less than 20% down (LTV greater than 80%)
Late fee for a conventional loan is ___ of the principal and interest.
5%
Seller Concessions
Conventional Loan: ___
FHA Loan: ___
VA Loan: ___
3% / 6% / 4%
Prepayment penalties are prohibited on _________.
FHA Loans
The SAFE Act defines a non-traditional mortgage product as anything other than a __________________ mortgage.
30-year fixed rate
a 30-year fixed rate mortgage is also known as a _______________.
Traditional Mortgage
