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NMLS Exam > NonConventional Loan Programs > Flashcards

NonConventional Loan Programs Flashcards

1
Q

Non Conventional Loan Programs CANNOT have

A

a prepayment penalty

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2
Q

For a Non Conventional Loan for Primary Residence, within how many days must a person occupy the home?

A

60 days to occupy home

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3
Q

For a Non Conventional Loan for Primary Residence, how long must a person stay at that home?

A

Stay 1 year

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4
Q

Is an FHA Loan insured?

A

Yes! FHA Loans are insured

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5
Q

Is an FHA Loan Conventional or Non Conventional?

A

NON CONVENTIONAL

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6
Q

GNMA applies to which loan program?

A

Non Conventional Loans

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7
Q

What do all Non Conventional Loans require?

A

They require escrows

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8
Q

Who can apply for an FHA loan?

A

Any US Citizen or long term permanent resident

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9
Q

For FHA Loan, What is the MAX LTV if credit is 580+?

A

96.5%

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10
Q

For an FHA Loan, What is MAX LTV if the borrower’s credit is 500-579?

A

90%

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11
Q

What AUS do FHA Loans use?

A

TOTAL

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12
Q

Which personal certification does an FHA Loan use?

A

DE = Direct Endorse

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13
Q

For an FHA Loan, one must always check ___________.

A

CAVRS (Credit Alert Verification System)

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14
Q

Are gift funds allowed for FHA Loans?

A

Yes; in full.

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15
Q

What is the MAX late fee for an FHA Loan?

A

4%

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16
Q

What is the MAX IPC (interested party contributions) allowed for an FHA Loan?

A

6%

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17
Q

What is the MAX DTI for an FHA Loan?

A

31/43

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18
Q

Is an FHA Loan assumable?

A

Yes

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19
Q

What sort of mortgage insurance is used for FHA Loans?

A

MIP (monthly Mortgage Insurance Premium)

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20
Q

If you start an FHA Loan with greater than 90% LTV, how long will the borrower pay for MIP?

A

The borrower would pay MIP the entire life of the loan.

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21
Q

If you start an FHA Loan with less than 90% LTV, how long will the borrower pay for MIP?

A

The borrower will have to pay MIP for at least 11 years.

22
Q

FHA Loan type:

203 (b)

A

Regular FHA Loan

23
Q

FHA Loan type:

203 (k)

A

Construction

24
Q

FHA Loan type:

203 (h)

A

Disaster relief

25
Q

FHA Loan type:

251

A

ARM

26
Q

FHA Loan type:

234 (c)

A

Condo

27
Q

Is a VA Loan guaranteed?

A

Yes!

28
Q

Who is eligible for a VA Loan?

A

Veterans and their eligible spouses

29
Q

What is the MAX LTV for a VA Loan?

A

100%

30
Q

What is basic entitlement for a VA Loan?

A

$36,000 + bonus entitlement of 1/4th of county conforming loan limit

31
Q

What is the underwriting personal certificate used for VA Loans?

A

AE = Auto Endorse

32
Q

What is the MAX late fee for a VA Loan?

A

4%

33
Q

What is the total MAX DTI for a VA Loan?

A

41%

34
Q

For a VA Loan, can familial status and residual income be included while calculating DTI?

A

Yes!!

35
Q

What is the MAX origination fee for a VA Loan?

A

1%

36
Q

Which two documents work as the VA Appraisal?

A

CRV (Certificate of Reasonable Value) and NOV (Notice of Value)

37
Q

Who conducts a VA Appraisal?

A

Staff Appraisal Review (SAR)

38
Q

For a VA Loan, how expensive is the funding fee (one-time up-front charge)?

A

1.25 - 3.3%

39
Q

When can the funding fee for a VA Loan be waived?

A

If there is a service-connected disability rating of 10% or more.

40
Q

What eligibility documentation is required for a VA Loan?

A

COE = Certificate of Eligibility

41
Q

For a VA Loan, What 3 eligibility documentation forms can be used in addition to the COE?

A
  1. DD214
  2. NGB 22/23
  3. Letter from CO
42
Q

What is another name for USDA Loans?

A

Section 502

43
Q

Where can a person get a USDA Loan?

A

Rural area with population density less than 20,000 people per Metro Stat Area (MSA)

44
Q

To have a USDA Loan you must be purchasing ______________ _________ Property.

A

Residential Real Property

45
Q

Are USDA Loans insured?

A

Yes!

46
Q

Do USDA Loans have monthly MIP?

A

No!!! USDA Loans have UFMIP (up-front mortgage insurance premium) with NO MONTHLY

47
Q

What is the income limit for a USDA Loan?

A

115% AMI (Area Median Income)

48
Q

What type of Home must a USDA Loan be?

A

Homes that are “modest in size, design, and cost”

49
Q

How does a USDA Loan define “modest”?

A

Less than 2000 square feet and no in-ground pool (booooo) :(

50
Q

USDA Loans offer what percentage LTV?

A

100%

51
Q

What is the only program that may actually help lend money if there is no other lender accessible?

A

USDA

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