N7 FHA, VA, Conventional Loans Flashcards Preview

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Flashcards in N7 FHA, VA, Conventional Loans Deck (41)
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1

FHA stands for __________.

Federal Housing Administration

2

In an FHA loan, the lender is ________ against loss.

Insured

3

The FHA is regulated by:

HUD, the department of Housing and Urban Development

4

A borrower on an FHA loan pays an ________ to insure the lender against loss.

Mortgage Insurance Premium, MIP

5

An FHA appraisal is also known as a ________.

Conditional Commitment

6

FHA escape clause or FHA Amendatory Clause

The requirement for an FHA loan stating that unless the appraisal is equal to or greater than the sale price, the buyer may withdraw from the agreement.

7

FHA Loans are for _____to ______ family units.

1 to 4 family units

8

FHA Loans are for ____ occupied properties.

Owner

9

Do FHA Loans have prepayment penalties?

NO

10

The VA stands for _______.

the Department of Veteran Affairs

11

In a VA loan the lender is ______ against loss.

guaranteed

12

Certificate of Eligibility

The document issued by the VA stating that the veteran qualifies and the amount of the veteran’s guarantee or entitlement.

13

When a VA loan is paid off, the veteran’s eligibility is _____.

restored

14

VA Funding Fee

The Veteran pays this at the time of loan origination.

15

Certificate of Reasonable Value, CRV

Name for a VA Appraisal

16

The typical amount of down payment in a VA Loan.

0%, Zero Down, $0, Nothing, Nada, Zilch, Jack Shit.

17

The typical Loan To Value (LTV) in a VA Loan.

100%

18

VA Loans are for _____ ______ properties.

Owner Occupied

19

Do VA Loans have a prepayment penalty?

NO

20

A loan with no FHA insurance or a VA guarantee.

Conventional Loan

21

An uninsured conventional loan typically requires the down payment to be ____ of the purchase price.

20%

22

Loan Fraud

Making false statements to obtain a loan.

23

Three Ways Loan Fraud can occur:
a. ______________

b. ______________

c. ______________

a. Falsifying income or assets 
b. Providing gift letters from a private party when it is actually a loan 
c. Causing a lender to incur a higher loss than would have occurred if the lender had known all facts relating to a short sale.

24

In an uninsured conventional loan, the insurance premium is abbreviated _____ or ______.

MI or PMI ( They are abbreviations for: Mortgage Insurance or Private Mortgage Insurance)

25

Discount Points

An amount charged by a lender to increase the lender’s yield and/or lower the borrower’s interest rate

26

One discount point = ________

1% of the loan in dollars.

27

Origination Fee

A charge made by the lender to offset the cost of originating the loan.

28

What are Discount points always based on?

The amount of the Loan

29

An Assumed Loan or Assumption

The buyer takes over payments and responsibility for a loan.

30

The process of re-writing an existing loan, substituting a new borrower and releasing the former borrower from of liability.

Novation