Loans

Question 1

Who is aUSDA Loan for?
LTV?
DTI?
Term of loan?

Answer 1

Low income individuals or households where their income is not more than 115% of the median income-Owner Occupied

101%

DTI 29/41

30 year Fixed

Question 2

Blanket Mortgage

Answer 2

Commercial purposes

Used to finance multiple parcels of land

Partial release clause is used to sell parcels at different times

Question 3

Bridge Loan

Answer 3

Temporary financing

Typically no payments for 6-12 months

Low LTV

Question 4

Balloon Loan (mortgage)

Answer 4

Borrower pays a 30 year piti but Loan comes due earlier that 30 years (5-15)

360/180 or 30/15

Question 5

HECM

Answer 5

Home equity conversion mortgage
Must be 62 years or older
Must be primary residence
Must be free and clear, or very little owed
Must pay taxes and insurance
No minimum credit score or DTI
Can pay out monthly, and a lump sum, or a line of credit

Question 6

Construction loans

Answer 6

Temporary or interim financing

Distributed in draws

Typically pay interest only payments while the home is under construction.

Replaced with permanent financing went home is completed

Appraiser will clarify that the construction is complete
FNMA: 1004D. Freddie Mac:442