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Mortgage Loan Officer > Loan Types > Flashcards

Loan Types Flashcards

1
Q

These mortgages do not meet standards of Fannie Mae or Freddie Mac and cannot be sold on the secondary market and can also be called a jumbo loan.

A

Nonconforming mortgage

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2
Q

On this type of loan, the lender may also charge a flat fee, up to 1% of the loan amount, to cover the Lenders costs.

A

VA loan

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3
Q

Veteran eligibility based on length of service with required documentation.

A

VA loan

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4
Q

The lender said is the interest rate on this type of loan, not the enterprise ensuring it.

A

VA loan

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5
Q

When construction is complete, the appraiser verifies it specifications have been met in the original opinion of the value is valid, and the loan is replaced by permanent Financing, called what?

A

Take out loan

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6
Q

The maximum term for this loan is 30 years, and the late fee is 4% of the monthly principal and interest

A

VA loan

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7
Q

For this type of mortgage, the no-doc loans/Nina loans are not allowed. It’s at a maximum debt to income ratio of 43% and Points and fees at 3%/3 points.

A

Qualified mortgage

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8
Q

DD – 214 discharge papers or certificate of eligibility documents required for this loan

A

VA loan

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9
Q

For this type of mortgage, long term is over 30 years are prohibited. Interest only loans in negative amortization loans are not allowed.

A

Qualified mortgage

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10
Q

This type of loan can be used in the rule areas in small towns up to 35,000 people.

A

USDA loan

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11
Q

Covers more than one parcel of land or lots, and is usually used to finance subdivision development

A

Blanket mortgage

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12
Q

Occurs between the termination of one mortgage in the beginning of the next.

A

Bridge Mortgage

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13
Q

For this type of loan, the lenders set the interest rates, not the FHA or HUD.

A

Federal housing administration

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14
Q

Designed to be temporary, and are used most commonly for construction financing, the less common use is for someone buying a new home before selling the old one.

A

Bridge mortgage

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15
Q

For this type of loan, the lender determines which repairs must be made to make the property eligible for financing.

A

Federal housing administration

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16
Q

For this type of loan, appraisals must be reviewed and issued: notice of value or certificate of reasonable value.

A

VA loan

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17
Q

This type of mortgage allows qualified borrowers, 62 and older, to convert equity in the home without selling or making payments.

A

Reverse mortgage

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18
Q

Minimum investments can be non-repayable gifts from relatives but gift donor may not be a person or entity with an interest in the sale of the property.

A

Federal housing administration

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19
Q

On this type of mortgage, there are no payments due from the borrower.

A

Reverse mortgage

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20
Q

If legally married, spouses income may also be considered for qualification purposes. A non-married couple borrower is not allowed unless he or she is in eligible for this loan and will also occupy the home.

A

VA loan

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21
Q

A _______________ pays a percentage of funds at a set time, a series of predetermined disbursements, called ____________________, are paid out in various stages of construction.

A

Fixed disbursement plan, oligatory advances.

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22
Q

Canty loan applicants may have an income of up to 115% of the area medium income.

A

USDA loan

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23
Q

This type of a loan is for primary residence only and requires a minimum 3.5% down payment. The entire down payment can be a gift from a relative.

A

Federal housing administration

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24
Q

On this type of loan, Private mortgage insurance is required on all loans where the borrower puts down less than 20% of the loan amount at closing.

A

Conventional loans

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25
Q

To qualify for this loan, required repairs for existing properties include those that:
Protect the health and safety of the occupants, protect the security of the property, correct physical deficiencies or conditions affecting structural integrity.

A

Federal housing administration

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26
Q

On this type of mortgage, repayment is doing the last surviving borrower or dies or sells the home.

A

Reverse mortgage

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27
Q

When loan terms remain constant for the life of the loan. Loan terms are generally 15 or 30 years.

A

Fixed rate

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28
Q

On this type of mortgage, re-payment is due when the borrower ceases to live in the home for 12 consecutive months or cease to pay property tax and insurance fees.

A

Reverse mortgage

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29
Q

How much can you finance on a USDA loan?

A

100%

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30
Q

On a VA loan one of two types of borrowers can have the one time variable funding fee waved.

A

Disabled veterans and surviving spouses of veterans who died in service.

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31
Q

For this type of mortgage, interest rate periodically adjusts to reflect fluctuations in cost of money.

A

Adjustable rate mortgage

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32
Q

This type of credit is money that is available to the homeowner to be borrowed as needs arise. In open in the loan.

A

Home-equity line of credit

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33
Q

This one is administered by the department of agriculture.

A

USDA loan

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34
Q

Generally, and appraiser will value the property for this loan by evaluating the building plans and specifications, completing a “subject to” appraisal.

A

Construction loan

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35
Q

On a conforming loan, how many months of reserves should borrow or have?

A

Two months

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36
Q

Borrowers with this type of loan must establish occupancy of the property as the principal residence within 60 days of signing a security instrument in must live in the house for at least one year.

A

Federal housing administration

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37
Q

When a buyer borrows money from another source, other than the primary lender, to pay part of the purchase price or closing cost, it is called this.

A

Secondary financing

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38
Q

This loan is guaranteed to the veterans benefits administration.

A

VA loan

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39
Q

On this type of loan the borrower must pay a nonrefundable one time very level funding fee at closing.

A

VA loan

40
Q

For this type of loan, there is no income limits, but does set a maximum mortgage amount that it will ensure.

A

Federal housing administration

41
Q

For this loan, borrower must occupy as principal residence within 60 days of closing alone, for at least 12 months.

A

VA loan

42
Q

This is usually a one time loan for a specific amount of money/specific purpose.

A

Home equity loan/home equity line of credit

43
Q

For this type of mortgage, no income requirements but must be able to pay continuing obligations related to the property. The tenure method of payment. The borrower receives a check instead of making a monthly payment.

A

Reverse mortgage

44
Q

For this type of mortgage, I just phoned right mortgages must be underwritten to the maximum interest rate they can be charged during the first five years of the long term. It prohibits the use of teaser rate in affordability calculations.

A

Qualified mortgage

45
Q

Also called an interim loan, this is a temporary loan used to finance the construction of improvements in buildings on the land.

A

Construction mortgage

46
Q

This type of loan is not insured or guaranteed by a government entity or agency.

A

Conventional loan

47
Q

This type of mortgage is done mostly for commercial real estate projects and is also known as a participation plan.

A

Equity Participation mortgage

48
Q

The interest rate on this type of mortgage, at closing is called the introductory rate, sometimes referred to as the start rate or initial rate.

A

Adjustable rate mortgage

49
Q

This rule essentially create new categories of mortgages and imposes minimum underwriting standards for most home loans, which is referred to as the ability to repay requirements.

A

Qualified mortgage rule

50
Q

On an adjustable rate mortgage, when the introductory rate is lower than the fully index street at the time of closing, this is known as what?

A

Teaser rate

51
Q

In this type of mortgage, any remaining equity belongs to estate

A

Reverse mortgage

52
Q

Closing cost may not be used to meet required minimum investment and down payment assistance grants may be given.

A

Federal housing administration

53
Q

FHA’s home equity conversion mortgage, is the most popular of this category of mortgages

A

Reverse mortgage

54
Q

This type of loan, there is a period of reduced payments, for a specific time, then payment increases to fully amortized by end of term.

A

Interest only payment mortgage (straight note)

55
Q

Sellers may contribute up to 6% of the lesser of the properties sales price, or the appraised value, toward closing costs.

A

Federal housing administration

56
Q

These type of mortgages meet the standards set by Fannie Mae and Freddie Mac, and may be sold in the secondary market.

A

Conforming mortgage

57
Q

2 eligible candidates may combine their benefits to qualify for a larger loan.

A

VA loan

58
Q

For this type of mortgage, prepayment penalties are prohibited. Prepayment penalty’s are prohibited except for certain fixed rate qualified loans.

A

Qualified mortgage

59
Q

A type of mortgage in which the interest rate periodically adjust up or down according to a specific index.

A

Adjustable rate mortgage

60
Q

It is possible for a veteran to use some entitlement on the previous purchase, and have partial entanglement available for another purchase if one of these 2 situations are applicable.

A
  1. The property, securing the VA loan, has been sold in the loan has been paid in full.
  2. An old veteran has agreed to assume the outstanding balance on a VA loan and substitute his entitlement for the same amount originally used on the loan.
61
Q

What percent of their own funds, should borrow ours have for a down payment on a conforming loan?

A

5%

62
Q

Permits the lender to share part of the earnings, income, or profits from the real estate project.

A

Equity participation mortgage

63
Q

This type of loan is a special type of construction loan where there is only one loan in one loan closing, with no take out loan. There is a fixed disbursement schedule for the loan funds, and the loan automatically converts to an amortizing first mortgage when construction is finished.

A

Permanent construction loan.

64
Q

Initial premium – upfront mortgage insurance premium is required for this type of loan

A

Federal housing administration

65
Q

For a conforming loan, what is the total housing expense ratio in total debt to income ratio?

A

28% total housing expense ratio 36% total debt to income ratio

66
Q

This type of loan provides financial support to low income homebuyers in rural communities or farm communities.

A

USDA loan

67
Q

This is the length of time between interest rate changes with adjustable rate mortgage is

A

Rate adjustment period

68
Q

And adjustable rate mortgage within initial fixed rate period greater than one year?

A

Hybrid adjustable rate mortgage

69
Q

Loan usually secured by a mortgage on ones principal residence.

A

Home equity loan/home equity line of credit

70
Q

Under the safe act, anything other than a 30 year fixed rate mortgage is called this.

A

Non-traditional mortgage

71
Q

They come in use for this type of mortgage is to buy a furnished condominium, where the loan and mortgage documents me also recite appliances and or furniture is part of the transaction. The personal property also serves as collateral for the loan.

A

Package mortgage

72
Q

When the borrowers credit history reflects significant derogatory issues or the borrower has documentation issues, They will often still qualify for this type of loan

A

Subprime loan

73
Q

Also known as the section 502 loan.

A

USDA loan

74
Q

For this type of mortgage, some of the advantages are: lenders give better interest rates, shorter term = less risk and the borrower has full ownership in half the time.

A

15 year mortgage loan

75
Q

This type of loan has written guidelines set by government sponsored entities so they may be sold on the secondary market.

A

Conventional loans

76
Q

Sellers concessions (closing cost) exceeding 4% of the established reasonable value of the property are unacceptable on this type of loan.

A

VA loan

77
Q

On this type of loan, the margin, which is sometimes referred to as the spread, remains fixed for the life of the loan.

A

Adjustable rate mortgage

78
Q

Usually has a partial release clause, allowing the borrower to pay a certain amount to release some of the lots with the mortgage continuing to cover the remaining lots.

A

Blanket mortgage

79
Q

A mortgage that includes personal property, like appliances, in the property sale and all our finances together in one contract, but generally requires an added security instrument to lean the personal property portion of the sale.

A

Package mortgage

80
Q

For this type of loan, at the minimum, the property must be free of health and safety standards.

A

Federal housing administration

81
Q

What is the maximum loan limit on a single-family home on a non-conforming loan?

A

$417,000

82
Q

For this loan the qualifying total debt to income ratio is 41%, no down payment required, no prepayment penalty.

A

VA loan

83
Q

Allows borrower to get cash for the equity that has built up in a property. And example would be a home equity loan for specific purpose or refinances in receives cash at the closing.

A

Cash out mortgage

84
Q

The amounts the applicant me borrow is based on the age of the youngest for work, the value of the property in the expected interest on the loan.

A

Reverse mortgage

85
Q

This type of loan is made by a bank or institutional lender

A

Conventional loan

86
Q

This phone has no maximum loan amount, no pre-payment penalty fee and the late fee is 4% of the principal and interest only.

A

USDA loan

87
Q

This type of loan generally may not exceed the 31/43 ratios.

A

Federal housing administration

88
Q

The max guarantee on this loan is 25% of the purchase price or appraised value, whichever is lower.

A

VA loan

89
Q

From this type of mortgage, balance of the loan rises as equity shrinks. Rising debt falling Equity.

A

Reverse mortgage

90
Q

This type of mortgage free as a lender from being locked into a fixed rate.

A

Adjustable rate mortgage

91
Q

Usually in addition to collecting principal and interest payments on the loan, for example, the lender may receive 5% of gross rents.

A

Equity participation mortgage

92
Q

What percentage is the late fee on a conventional loan?

A

5% of the monthly principal and interest

93
Q

Allows owners to tap into the equity built up in the property over the years, but still retain ownership.

A

Cash out mortgage

94
Q

If a lender issues this type of mortgage, it receives “safe harbor” (legal protection) if the borrower later goes into foreclosure.

A

Qualified mortgage

95
Q

Must be 3.5% of the homes purchase price or value, the lesser value, assuming credit score is at least 580

A

Federal housing administration

96
Q

This type of loan does have a maximum loan amount, depending on the borrowers county.

A

Federal housing administration

97
Q

When the next mortgage is taken out, this mortgage is repaid.

A

Bridge mortgage

Mortgage Loan Officer (10 decks)

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