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1
Q

Conventional Front End Ratio
Housing Expense Ratio (HER)

A

28%

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2
Q

Conventional Back End Ratio
Total Obligation Ratio (TOR)
or DTI (Debt To Income)

A

36%

(45% for Fannie - AUS)
(50% for Freddie - AUS)

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3
Q

USDA Front End Ratio
Housing Expense Ratio (HER)

A

29%

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4
Q

USDA Back End Ratio Total Obligation Ratio (TOR) or DTI (Debt to Income)

A

41%

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5
Q

VA Front End Ratio Housing Expense Ratio (HER)

A

0%

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6
Q

VA Back End Ratio Total Obligation Ratio (TOR) or DTI (Debt to Income)

A

41%

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7
Q

FHA Front End Ratio Housing Expense Ratio (HER)

A

31%

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8
Q

FHA Back End Ratio Total Obligation Ratio (TOR) or DTI (Debt To Income)

A

43%

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9
Q

Conventional Down Payment

A

3% First time buyer

5% Others (subsequent purchases)

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10
Q

According to Conventional loans when are
you considered a 1st time home buyer
after you have purchased a home

previously?

A

You are considered a 1st time home
buyer if you have not owned property in 3

years (36 months)

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11
Q

USDA Down Payment

A

0%

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12
Q

VA Down Payment

A

0%

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13
Q

FHA Down Payment

A

3.5 % for credit scores 580 and above OR 10% for credit scores 500-579

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14
Q

Conventional Seller Concessions

A

Seller Concessions/Seller Closing Costs/Seller
Contribute on the LOWER of
the APPRAISAL or PURCHASE PRICE

90.0001%+ (LTV) is 3%
75.0001% - 90% (LTV) is 6%
75% (LTV) & under is 9%
2% for Investment Property

**Tip the more the buyer puts down the more

the seller can contribute

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15
Q

USDA Seller Concessions

A

Seller Concessions/Seller Closing
Costs/Seller Contribute on the
LOWER of the APPRAISAL or
PURCHASE PRICE

6%

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16
Q

VA Seller Concessions

A

Seller Concessions/Seller Closing
Costs/Seller Contribute on the
LOWER of the APPRAISAL or
PURCHASE PRICE

4%

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17
Q

FHA Seller Concessions

A

Seller Concessions/Seller Closing
Costs/Seller Contribute on the
LOWER of the APPRAISAL or
PURCHASE PRICE

6%

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18
Q

Conventional Late Fees

A

5% of Principle & Interest ONLY

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19
Q

USDA Late Fees

A

4% of Principle & Interest ONLY

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20
Q

VA Late Fees

A

4% of Principle & Interest ONLY

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21
Q

FHA Late Fees

A

4% of Principle & Interest ONLY

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22
Q

Conventional bankrptcy/ShortSale/Foreclosure waiting periods

A

Chpt 13-2years
Chpt 7-4 years
Foresclosure- 7 years
Short Sale- 4 years
2474 CONVENTIONAL WAY

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23
Q

USDA bankruptcy/Short Sale/Foreclosure waiting periods

A

Chpt 13 - 1 year
chpt 7 - 3 years
foreclosure - 3 yrs
short sale - 3 yrs
1333 USDA Way

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24
Q

VA bankruptcy/Short Sale/Foreclosure waiting periods

A

Chpt 13 - 1 year
chpt 7 - 2 years
foreclosure - 2 yrs
short sale - 2 yrs
1222 VA Way

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25
FHA bankruptcy/Short Sale/Foreclosure waiting periods
Chpt 13 - 1 year chpt 7 - 2 years foreclosure - 3 yrs short sale - 3 yrs 1233 FHA Way
26
Conventional loans have private mortgage insurance until what LTV?
PMI automatically drops off at 78% LTV (conforming loans) and 77% LTV (non-conforming loans) or the mid point of the loan whichever comes first (year wise)
27
Conventional loans have private mortgage insurance until what equity level?
22%
28
Are conventional loans assumable?
No- they have a due on sale clause
29
What percent level of financing do USDA loans have?
100%
30
USDA can have extended terms up to how many years?
Can have terms up to 33 or 38 years when the borrower has an AMI below 80% or less (33 years) and below 60% (38 years)
31
A USDA loan applicant may have an income up to what?
115% of the median income
32
Do USDA loans have an upfront funding fee?
yes
33
Do USDA loans require Private Mortgage insurance?
NO
34
Who are USDA loans funded by?
Department of Agriculture
35
Do USDA loans have a prepayment penalty?
NO
36
What is a DD-214?
Discharge Papers (Duty discharge) or Report of Separation
37
What type of loan requires a DD-214 or LES (Leave & Earning Statement)?
All VA loans
38
Who Issues the DD-214
Department of Defense
39
What is NGB 22/23
NGB 22 is for NG members that have served for the last 6 years. NGB 23 proves that they are no longer in the military and where they stand with retirement
40
What is a COE?
Certificate of Eligibility (Amount of Entitlement) Up to 25% Guarantee of Loan amount
41
What is Entitlement?
The Maximum total that the VA will guarantee on behalf of the Veteran
42
What is the Veterans entitlement based off from?
Veterans entitlement is based on 25% of the County Limit
43
What is the VA funding fee on a first time use of a VA loan?
One time variable funding fee is 2.3% (2.15% 2023) Subsequent use funding fee is 3.6% (3.3% 2023)
44
What are 3 reasons that the funding fee would be waived?
If the Veteran is more than 10% disabled, the applicant is a surviving spouse of a veteran, or if the veteran is a purple heart recipient.
45
Are VA loans assumable?
Yes
46
What is the down payment for a VA loan?
0%
47
Do VA loans have prepayment penalties
No
48
If the Veteran is married, can the spouse's income be considered for qualification purposes?
Yes
49
Are unmarried co-borrowers allowed on a VA loan?
No. unless he or she is also eligible veteran who will reside in the home.
50
What are 2 types of appraisal used for VA loans?
CRV-Certificate of reasonable value and NOV- Notice of Value
51
What is the upfront MIP (mortgage insurance premium) for a FHA loan?
1.75% Upfront MIP for a 15-and30 year purchase and refinance transactions. .55% monthly MIP, if they put less than 5% down
52
When must a person using FHA loan take occupancy in the home if it is purchased as an owner occupied?
Within 60 days of signing.
53
What percentage of the loan does FHA insure?
100%
54
Are FHA loans assumable?
yes
55
Do FHA loans require certain appraiser?
Yes they must be FHA approved.
56
Do FHA loans have a maximum amount?
Yes it is determined in each county TIP this amount does NOT include the UFMIP
57
If the LTV of a FHA loan is <90% how long does MIP (mortgage insurance premium) last?
11 years
58
If the LTV of a FHA loan is > 90% how long does MIP (mortgage insurance premium) last?
The life of the loan
59
Resale of a FHA loan in 90 days or less after closing will not be eligible for another FHA mortgage
True
60
Resale of a FHA loan occurring 91-180 days after closing will be eligible for resale if what happens?
If an additional FHA appraisal is obtained.
61
Resale of a FHA loan after 90 days to 1 year after closing will be subject to what?
An additional review to establish value.
62
Section 35 is what?
HPML-High Priced Mortgage Loan
63
What are the percentage for a HPML?
1.5% - First Lien 2.5% - Jumbo First Lien 3.5% - Subordinate Liens TIP: Section 35 has the 3.5%
64
What are teh 3 rules that go with a HPML?
1: Must have the "A"bility to Repay 2: No "P"repayment penalty (unless in the first 2 years) 3: Require "E"scrow (Tax & Hazard Insurance) for the first 5 years) Tip: APE
65
What type of loan fall under HOEPA? (Home Ownership & Equity Protection Act)?
HCML-High Cost Mortgage Loans
66
What are the percentage for a HCML?
6.5% First Liens of 50k and up 8.5% First Liens under 50K 8.5% on Subordinate Liens
67
What are the 4 rules that go with a HCML?
1. Most "B"allons are prohibited 2. Must meet the "A"bility to repay 3. No "P"repayment penalty allowed 4. Must "S"peak to a HUD counselor TIP BAPS
68
What is another way a loan can become High Cost?
Points and fees exceeding the following: 5% of the loan amount for loans equal to or greater than $24,866 OR 8% of the total loan amount or $1,243 for loans less than $24,866
69
Can a HCML include a variable rate?
Yes
70
What is the 1003?
URLA Uniform Residential Loan Application Loan Application

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