Loans Flashcards
Fannie Mae/Freddie Mac Suitable Property
1-4 family unit principal residences
Single-family second homes
1-4 family investor properties (non-owner occupied)
Co-ops, condos, PDs, and leaseholds
Common DTI Ratios
Conforming loans use a 28% front ratio and a 36% back ratio (28/36).
The FHA uses a 31% front ratio and 43% back ratio (31/43).
The VA only uses back ratio of 41% as a guideline.
Non-conforming loans have very flexible DTI ratios
FannieMae AU
Desktop Underwriter
Desktop Originator
FreddieMac AU
Loan Prospector
FHA Appraisal Reporting Forms
1004-Uniform Residential Appraisal Report
1073-Individual Condo Unit Appraisal Report
1004C-Manufactured Home Appraisal Report
1025-Small Resid. Income Property Appraisal
FHA Loan Programs
203(b) Residential 251 ARM 245(a) GPM 255 Home Equity Conversion (62yrs) 203(k) Rehabilitation Title 1 Home Improvement Energy Efficient Mortgage
VA Benefits
No down payment - Certificate of Guaranty
Has Funding Fee by Law
No PMI
No prepayment penalty
Automatic Authority
Authority of a lender to close the loan w/o prior VA approval
Waivers in a Note
1 Presentment
2 Notice of Dishonor
3 C’s of Credit
Capacity
Character
Collateral
ARM Note Clauses
Interest Rate and Monthly Payment Changes
Payments
A valid NOTE has 4 elements
Promise to pay
Payable on demand
Payable to order/bearer
Signed by Maker
Title insurance
Abstract of Title
Chain of Title
Opinion of Title
IRS 1098
Mortgage Interest Statement
Strict Foreclosure only in:
Connecticut
Notice of Default for FHA loans
Form 2068
Accrued Interest
A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, but not yet paid or received.
Amount of Prepayment penalty
Usually 6months
GPM increases from
7.5 % to 12.5% of previous year pymt.
FHA Benefits:
3.5% Down
580 FICO
up to 98.15% loan.
Request for Tax Return
IRS Form
4506 / 4506-T
