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Mortgage Type (Progam) Flashcards

1
Q

Conventional Loan (Fannie & Freddie)
Debt-to-Income

A

28%/36% ( but can go up to 45% if the borrower meets certain circumstances)

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2
Q

Conventional Loan (Fannie & Freddie)
Down Payment and Loan-to-Value

A

3%
97%

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3
Q

Conventional Loan (Fannie & Freddie)
Seller Concession

A

3% (Depends on the down-payment)

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4
Q

Conventional Loan (Fannie & Freddie)
Credit Score

A

Depends, but the general rule of thumb is 640 FICO
(though it can go higher)

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5
Q

Conventional Loan (Fannie & Freddie)
Loan Limit

A

For 2023 = $726,000
over $726,000 is a non-confirming Conventional loan (jumbo Loan)

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6
Q

Conventional Loan (Fannie & Freddie)
Mortgage Insurance

A

Private Mortgage Insurance is required on conventional with less than 20% down (or LTVs over 80%

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7
Q

Conventional Loan (Fannie & Freddie)
Appraisal

A

Required unless Fannie or Freddie give an Appraisal Waiver when the loan goes through automated underwriting.

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8
Q

Conventional Loan (Fannie & Freddie)
Gift Funds

A

Yes, Allowed

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9
Q

Conventional Loan (Fannie & Freddie)
Borrowers with Bankruptcy

A

2 years from Chapter 13 discharge or 4 years from dismissal
(2 years with extenuating circumstances)
4 years from Chapter 7 filling (or 2 years with extenuating circumstances)

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10
Q

Conventional Loan (Fannie & Freddie)
Borrowers after Foreclosure

A

7 years from foreclosure
4 years from short sale

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11
Q

Conventional Loan (Fannie & Freddie)
LTV requirements on Cash Out Refinances

A

85% Maximum LTV

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12
Q

Conventional Loan (Fannie & Freddie)
Reserves

A

Usually 2 to 4 months
(determined by LP or DU)

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13
Q

Conventional Loan (Fannie & Freddie)
Non-Occupying Co-Borrower

A

Not Allowed

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14
Q

Conventional Loan (Fannie & Freddie)
Assumable

A

No

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15
Q

Conventional Loan (Fannie & Freddie)
Employment History

A

2 years required

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16
Q

Conventional Loan (Fannie & Freddie)
Owner-Occupancy

A

Yes within 60 days on owner-occupied properties

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17
Q

FHA Loan (Government Guaranteed - Ginnie Mae)
Debt-to-Income

A

31%/43%

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18
Q

FHA Loan (Government Guaranteed - Ginnie Mae)
Down Payment and Loan-to-Value

A

Minimum Down Payment = 3.5%
Loan-to-Value = up to 96.5%

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19
Q

FHA Loan (Government Guaranteed - Ginnie Mae)
Seller Concession

A

6% Maximum

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20
Q

FHA Loan (Government Guaranteed - Ginnie Mae)
Credit Score

A

580 with 3.5% down payment
500 to 579 if the borrower puts down 10% or more

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21
Q

FHA Loan (Government Guaranteed - Ginnie Mae)
Loan Limit

A

One-unit property: $472,030 floor $1,089,300 Ceiling
Two-unit property: $604,400 floor $1,394,775 Ceiling
Three-unit property: $730,525 floor $1,685,850 Ceiling
Four-unit property: $907,900 floor $2,095,200 Ceiling

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22
Q

FHA Loan (Government Guaranteed - Ginnie Mae)
Mortgage Insurance

A

Annual & Up Front Mortgage Insurance Required.
Amount depends on specific factors

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23
Q

FHA Loan (Government Guaranteed - Ginnie Mae)
Appraisal

A

Required

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24
Q

FHA Loan (Government Guaranteed - Ginnie Mae)
Gift Funds

A

Yes, Allowed

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25
FHA Loan (Government Guaranteed - Ginnie Mae) Borrowers with Bankruptcy
1 year after Chapter 13 filing 2 years after Chapter 7 discharged
26
FHA Loan (Government Guaranteed - Ginnie Mae) Borrowers after Foreclosure
3 years from foreclosure or short sale
27
FHA Loan (Government Guaranteed - Ginnie Mae) LTV requirements on Cash Out Refinances
85% Maximum TV
28
FHA Loan (Government Guaranteed - Ginnie Mae) Reserves
No Reserve Requirement
29
FHA Loan (Government Guaranteed - Ginnie Mae) Non-Occupying Co-Borrower
Allowed
30
FHA Loan (Government Guaranteed - Ginnie Mae) Assumable
Yes with FHA creditworthiness check
31
FHA Loan (Government Guaranteed - Ginnie Mae) Employment History
FHA loans are less strict on employment history, no specific requirement
32
FHA Loan (Government Guaranteed - Ginnie Mae) Owner-Occupancy
Yes (must move in within 60 days) and continue to occupancy for one year
33
VA Loan Debt-to-Income Qualifications
41% with residual income calculation
34
VA Loan Down Payment and Loan-to-Value
Down Payment = 0% (100% financing available on purchase transactions) Loan-to-Value = 100%
35
VA Loan Seller Concession
4%
36
VA Loan Credit Score
N/A
37
VA Loan Loan Limit
N/A
38
VA Loan Mortgage Insurance
No Mortgage Insurance - but funding fee required. Funding Fee amount depends on: down - payment & entitlement usage
39
VA Loan Appraisal
Required
40
VA Loan Gift Funds
Allowed if Borrower puts a down payment down
41
VA Loan Borrowers with Bankruptcy
1 year after Chapter 13 filing 2 years after Chapter 7 discharged
42
VA Loan Borrowers after Foreclosure
2 years from foreclosure or short sale
43
VA Loan LTV requirements on Cash Out Refinances
90% Maximum LTV
44
VA Loan Reserves
No Reserve Requirement
45
VA Loan Non-Occupying Co-Borrower
Allowed
46
VA Loan Assumable
Yes, with V/A Lender Approval
47
VA Loan Employment History
N/A
48
VA Loan Owner-Occupancy
Yes within 60 days
49
USDA Loan Debt-to-Income
29%/41
50
USDA Loan Down Payment and Loan-to-Value
0% (100% financing available on purchase transactions)
51
USDA Loan Seller Concession
Unrestricted
52
USDA Loan Credit Score
N/A
53
USDA Loan Loan Limit
there's no limit on the total amount of money you can borrow to cover the cost of your property's current market value USDA Direct Loan Limit In most U.S. counties you can borrow up to $336,500
54
USDA Loan Mortgage Insurance
No Mortgage Insurance Required Guarantee Fee Required Annually and Upfront Initial guarantee fee = 1% Monthly guarantee fee .35%
55
USDA Loan Appraisal
Required
56
USDA Loan Gift Funds
Allowed if Borrower puts a down payment
57
USDA Loan Borrowers with Bankruptcy
1 year after Chapter 13 filing 3 years after Chapter 7 discharge
58
USDA Loan Borrowers after Foreclosure
3 years after foreclosure or short sale
59
USDA Loan LTV requirements on Cash Out Refinances
No Maximum
60
USDA Loan Reserves
No reserve requirement
61
USDA Loan Non-Occupying Co-Borrower
Not Allowed
62
USDA Loan Assumable
No
63
USDA Loan Employment History
2 years encouraged 1 year required
64
USDA Loan Owner-Occupancy
Yes, within 60 days
65
USDA Loan Income Limit
115% of area median

MLO Test (7 decks)

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