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MLO Test > Mortgage Type (Progam) > Flashcards

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
Q

FHA Loan (Government Guaranteed - Ginnie Mae)
Borrowers with Bankruptcy

A

1 year after Chapter 13 filing
2 years after Chapter 7 discharged

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26
Q

FHA Loan (Government Guaranteed - Ginnie Mae)
Borrowers after Foreclosure

A

3 years from foreclosure or short sale

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27
Q

FHA Loan (Government Guaranteed - Ginnie Mae)
LTV requirements on Cash Out Refinances

A

85% Maximum TV

28
Q

FHA Loan (Government Guaranteed - Ginnie Mae)
Reserves

A

No Reserve Requirement

29
Q

FHA Loan (Government Guaranteed - Ginnie Mae)
Non-Occupying Co-Borrower

A

Allowed

30
Q

FHA Loan (Government Guaranteed - Ginnie Mae)
Assumable

A

Yes with FHA creditworthiness check

31
Q

FHA Loan (Government Guaranteed - Ginnie Mae)
Employment History

A

FHA loans are less strict on employment history, no specific requirement

32
Q

FHA Loan (Government Guaranteed - Ginnie Mae)
Owner-Occupancy

A

Yes (must move in within 60 days) and continue to occupancy for one year

33
Q

VA Loan
Debt-to-Income Qualifications

A

41% with residual income calculation

34
Q

VA Loan
Down Payment and Loan-to-Value

A

Down Payment = 0% (100% financing available on purchase transactions)
Loan-to-Value = 100%

35
Q

VA Loan
Seller Concession

A

4%

36
Q

VA Loan
Credit Score

A

N/A

37
Q

VA Loan
Loan Limit

A

N/A

38
Q

VA Loan
Mortgage Insurance

A

No Mortgage Insurance - but funding fee required.
Funding Fee amount depends on:
down - payment & entitlement usage

39
Q

VA Loan
Appraisal

A

Required

40
Q

VA Loan
Gift Funds

A

Allowed if Borrower puts a down payment down

41
Q

VA Loan
Borrowers with Bankruptcy

A

1 year after Chapter 13 filing
2 years after Chapter 7 discharged

42
Q

VA Loan
Borrowers after Foreclosure

A

2 years from foreclosure or short sale

43
Q

VA Loan
LTV requirements on Cash Out Refinances

A

90% Maximum LTV

44
Q

VA Loan
Reserves

A

No Reserve Requirement

45
Q

VA Loan
Non-Occupying Co-Borrower

A

Allowed

46
Q

VA Loan
Assumable

A

Yes, with V/A Lender Approval

47
Q

VA Loan
Employment History

A

N/A

48
Q

VA Loan
Owner-Occupancy

A

Yes within 60 days

49
Q

USDA Loan
Debt-to-Income

A

29%/41

50
Q

USDA Loan
Down Payment and Loan-to-Value

A

0% (100% financing available on purchase transactions)

51
Q

USDA Loan
Seller Concession

A

Unrestricted

52
Q

USDA Loan
Credit Score

A

N/A

53
Q

USDA Loan
Loan Limit

A

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
Q

USDA Loan
Mortgage Insurance

A

No Mortgage Insurance Required

Guarantee Fee Required Annually and Upfront
Initial guarantee fee = 1%
Monthly guarantee fee .35%

55
Q

USDA Loan
Appraisal

A

Required

56
Q

USDA Loan
Gift Funds

A

Allowed if Borrower puts a down payment

57
Q

USDA Loan
Borrowers with Bankruptcy

A

1 year after Chapter 13 filing
3 years after Chapter 7 discharge

58
Q

USDA Loan
Borrowers after Foreclosure

A

3 years after foreclosure or short sale

59
Q

USDA Loan
LTV requirements on Cash Out Refinances

A

No Maximum

60
Q

USDA Loan
Reserves

A

No reserve requirement

61
Q

USDA Loan
Non-Occupying Co-Borrower

A

Not Allowed

62
Q

USDA Loan
Assumable

A

No

63
Q

USDA Loan
Employment History

A

2 years encouraged
1 year required

64
Q

USDA Loan
Owner-Occupancy

A

Yes, within 60 days

65
Q

USDA Loan
Income Limit

A

115% of area median

MLO Test (7 decks)

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