Mortgage Products and Programs

Question 1

Requires verification of 41% residual income

Answer 1

VA Loans

Question 2

Allows assumption and requires UFMIP

Answer 2

FHA Loans

Question 3

For elderly borrowers, includes negative amortization feature

Answer 3

HECM (Home Equity Conversion Mortgage)

Question 4

Requires a guarantee fee

Answer 4

USDA Loans

Question 5

Requires PMI when the LTV is higher than 80%

Answer 5

Conventional Loans

Question 6

Does not conform to Fannie and Freddie Mac but does the ATR (Ability to Repay rule)

Answer 6

Non-QM Loans

Question 7

Exceeds the Conventional Loan limit

Answer 7

Jumbo Loans

Question 8

Has a fixed interest rate

Answer 8

Fixed Rate Morgages

Question 9

Has a margin and an index

Answer 9

Adjustable Rate Mortgage

Question 10

Advertised as a 3/1, 5/1, 7/1 or 10/1

Answer 10

Hybrid ARM

Question 11

ARM that allows the borrower to choose several payments

Answer 11

Payment Option ARMS

Question 12

Used to provide advances for the construction of a home

Answer 12

Construction Loan

Question 13

Used by borrowers to go from one house to another

Answer 13

Bridge Loan

Question 14

Has a large payment at the end of the term

Answer 14

Balloon Mortgage

Question 15

Has payments that increase as time goes on

Answer 15

Graduated Payment Loan