FHA, VA, CONV, Loans and Prime/2nd Mkt 7 Flashcards Preview

AZ Real Estate Agent License 2020 > FHA, VA, CONV, Loans and Prime/2nd Mkt 7 > Flashcards

Flashcards in FHA, VA, CONV, Loans and Prime/2nd Mkt 7 Deck (101)
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1

 

Lender is Insured from Loss by this Housing Program.  This Insurance Protection Allows Borrower to obtain Loans with Higher Loan to Value Ratio (LTV)  and Smaller Down Payment as compared to Uninsured Conventional Loans

(FHA) Fed Housing Administration - Insured Loans

Lender is Insured from LossThis Insurance Protection Allows Borrower to obtain Loan with Higher Loan to Value Ratio (LTV)  and Smaller Down Payment as compared to Uninsured Conventional Loans

Chap 7

2

FHA is regulated by what Dept?

HUD -

Dept of Housing and Urban Development - Regulates FHA.

Chap 7

3

FHA Insured Loans Guidelines

  1. FHA Ap_____ Lenders make the Loans
  2. FHA Regulated by Dept of H_____ & Ur___ Development (HUD)
  3. Borrower Pays (MIP) Mor____ Ins_____ Pre_____.  Mortgage Insurance protects the Lender if Property For_____
  4. Appraisal is called Cond_____ Com______
  5. Escape Clause (FHA Ame______ Clause) - Used if Appraisal is Not Equal or Above Purchase Price. Buyer can Back-Out.
  6. Owner Occupied - 1 to __ Units Only
  7. No Pre______ Pen_____

FHA Insured Loans Guidelines

  1. FHA Approved Lenders make the Loans
  2. FHA Regulated by Dept of Housing & Urban Development (HUD)
  3. Borrower Pays (MIP) Mortgage Insurance Premium.  Mortgage Insurance protects the Lender if Property Forclosed
  4. Appraisal is - Conditional Commitment
  5. Escape Clause (FHA Amendatory Clause) - Used if Appraisal is not Equal or Above Purchase Price. Buyer can Back-Out.
  6. Owner Occupied - 1 to 4 Units Only
  7. No Prepayment Penalties

4

Cond______ C_________

FHA Appraisal

Conditional Commitment -

FHA Appraisal

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5

VA Loan Requirements

  1. VA Ap______ Lenders makes Loans
  2. Cert______ of Elig_____ - Veteran Eligibility and Amount Guarantee (Entitlement)
  3. VA F______ Fee - So No MIP
  4. Appraisal is called - Cert_____ of Reas_____ V___ (CRV)
  5. No Down Payment - ____% LTV Unless Over Purchase Price
  6. Owner Occupied - 1 to __ Units
  7. No Pre_______ Penalties

VA Loan Requirements

  1. VA Approved Lenders makes Loans
  2. Certificate of Eligibility - Veteran Eligibility and Amount Guarantee (Entitlement)
  3. VA Funding Fee - So No MIP
  4. Appraisal - Certiticate of Reasonable Value (CRV)
  5. No Down Payment - 100% LTV Unless Over Purchase Price
  6. Owner Occupied - 1 to 4 Units
  7. No Prepayment Penalties

Chap 7

6

Es____ Clause (FHA Amen_____ Clause) -

  1. Used if FHA Appraisal Value is Not Equal to or Greater than Purchase Price.
  2. Buyers must See Appr_____ or Can Back Out of Contract.

Escape Clause (FHA Amendatory Clause) -

  1. Used if FHA Appraisal Value is not equal to or greater than purchase price.
  2. Buyers must See Appraisal or Can Back Out of Contract.

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7

(CRV) Cer_____ of Rea______ Value -

VA Appraisal

(CRV) Certificate of Reasonable Value -

VA Appraisal

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8

VA F_____ Fee -

Charged on VA loan instead of MIP

VA Funding Fee -

Charged on VA loan instead of MIP

Chap 7

9

FHA and VA Loans -

Both types of loans have No Pre______ Pen______

FHA and VA Loans -

Both types of loans have No Prepayment Penalties

Chap 7

10

 

Assist Lenders to Provide Loans for Low to Moderate Income Households in "Rural Areas"

(USDA) US Dept of Agriculture Loans (Guaranteed) - Rural Areas

Assist lenders to Provide Loans for Low to Moderate Income Households in "Rural Areas"

Chap 7

11

P

AZ Department of Housing provides these Loans in Hardest Hit Areas by Foreclosures

Pathway to Purchase - Down Payment Assistance - Foreclosure Areas

AZ Department of Housing provides these Loans in Hardest Hit Areas by Foreclosures

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12

SBA Loans (S____ B_____ Adm_______) -

Loans made to Purchase or Expand a Small Business

SBA Loans (Small Business Administration) -

Loans made to Purchase or Expand a Small Business

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13

Con_______ Loans -

Loan is made Solely Based on Security and Borrower's Ability to Repay.

No Guarantees or Government Insurance

Conventional Loans -

Loan is made Solely Based on Security and Borrower's Ability to Repay.

No Guarantees or Government Insurance

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14

Conventional (Un______) Loans  -

Loans that Require __% down. Based on Borrower's Ability to Repay. No Government Insurance or Guarantee

Conventional (Unisured) Loans  -

Loans that Require 20% down. Borrower's Ability to Repay. No Government Insurance or Guarantee

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15

Conf______ Loans

Loans that meet all Fannie Mae and Freddie Mac Guidelines.

Conforming Loans -

Loans that meet all Fannie Mae and Freddie Mac Guidelines

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16

Loans that "Do Not" meet Fannie Mae or Freddie Mac Guidelines.

Non-Conforming Loans -

Loans that "Do Not" meet Fannie Mae or Freddie Mac guidelines.

Chap 7

 

17

                        

Loans offered at a Higher Interest Rate for Less Qualified Borrowers

Subprime Loans - (Less Qualified)

Loans offered at a Higher Interest Rate for Less Qualified Borrowers

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18

Pri_____ I_____ and H____ M____ L_____

Loans offered at Higher Interest for

"Hard to Finance" Borrowers and Properties

Private Investor and Hard Money Loans -

Loans offered at Higher Interest for

"Hard to Finance" Borrowers and Properties

Chap 7

19

 

Assist lenders to provide loans for Low to Moderate Income Households in Rural Areas

(USDA) US Dept of Agriculture Loans  (Guaranteed) - Rural Areas

Assist lenders to provide loans for Low to Moderate Income Households in Rural Areas

Chap 7

20

Discount Point and Buydowns

Used to Increase L____'s Y___ or Lower Borrowers Rate

Discount Point and Buydowns

Used to Increase Lender's Yield or Lower Borrowers Rate

Chap 7

21

Loan O_____ Fee -

Covers Initial Cost of Loan

Loan Origination fee -

Covers Initial Cost of Loan

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22

T___ S___ F___

Charge to Hire a Tax Service Company to Infom Lender When Property Taxes are Due and Payable.

Tax Service Fee

Charge to Hire a Tax Service Company to Inform Lender When Property Taxes are Due and Payable.

Chap 7

23

Und_______ Fee -

Offset Cost to determine Borrower's Ability Qualify or to Repay Loan

Underwriting fee -

Offset Cost to determine Borrower's Ability Qualify or to Repay Loan

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24

P______ ______ and D______ _____ ______

AZ Department of Housing provides these Loans in Hardest Hit Areas by Foreclosures

Pathway to Purchase - Down Payment Assistance - Foreclosure Areas

AZ Department of Housing provides these Loans in Hardest Hit Areas by Foreclosures

Chap 7

25

 

Estimate how much Borrower can Afford to Borrow

Pre-Qualification -

Estimate how much Borrower can Afford to Borrow

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26

Pre-Approval -

Completed L___ App, Inc____ provided, and  Borrower's  Cr___ Report reviewed that indicates a Strong Possibility Loan will Close.

Pre-Approval -

Completed Loan App, Income provided, and  Borrower's  Credit Report reviewed that indicates a Strong Possibility Loan will Close.

Chap 7

27

R__ L__

Lender Guarantees the Interest Rate will not Change Prior to Closing.

Rate Lock -

Lender Guarantees the Interest Rate will not Change Prior to Closing.

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28

F____ R___

Interest Rate Could Change prior to Closing

Floating Rate

Interest Rate Could Change prior to Closing

Chap 7

29

Credit Score (Fico Score) -

Ma________ Formula to indicate Person's Credit History

Credit Score (Fico Score) -

Mathematical Formula to indicate Person's Credit History

Chap 7

30

-

  1. Financial Intermediary that Make "Large Loans" to Commercial and Industrial Borrowers.
  2. Residential Loans Done - thru Mortgage Companies
  3. Buys Loans in Secondary Market

Insurance Companies -

  1. Financial Intermediary that Make "Large Loans" to Commercial and Industrial Borrowers.
  2. Residential Loans Done - thru Mortgage Companies
  3. Buys Loans in Secondary Market

Chap 7