NonConventional Loan Programs

Question 1

Non Conventional Loan Programs CANNOT have

Answer 1

a prepayment penalty

Question 2

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

Answer 2

60 days to occupy home

Question 3

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

Answer 3

Stay 1 year

Question 4

Is an FHA Loan insured?

Answer 4

Yes! FHA Loans are insured

Question 5

Is an FHA Loan Conventional or Non Conventional?

Answer 5

NON CONVENTIONAL

Question 6

GNMA applies to which loan program?

Answer 6

Non Conventional Loans

Question 7

What do all Non Conventional Loans require?

Answer 7

They require escrows

Question 8

Who can apply for an FHA loan?

Answer 8

Any US Citizen or long term permanent resident

Question 9

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

Answer 9

96.5%

Question 10

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

Answer 10

90%

Question 11

What AUS do FHA Loans use?

Answer 11

TOTAL

Question 12

Which personal certification does an FHA Loan use?

Answer 12

DE = Direct Endorse

Question 13

For an FHA Loan, one must always check ___________.

Answer 13

CAVRS (Credit Alert Verification System)

Question 14

Are gift funds allowed for FHA Loans?

Answer 14

Yes; in full.

Question 15

What is the MAX late fee for an FHA Loan?

Answer 15

4%

Question 16

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

Answer 16

6%

Question 17

What is the MAX DTI for an FHA Loan?

Answer 17

31/43

Question 18

Is an FHA Loan assumable?

Answer 18

Yes

Question 19

What sort of mortgage insurance is used for FHA Loans?

Answer 19

MIP (monthly Mortgage Insurance Premium)

Question 20

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

Answer 20

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

Question 21

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

Answer 21

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

Question 22

FHA Loan type:

203 (b)

Answer 22

Regular FHA Loan

Question 23

FHA Loan type:

203 (k)

Answer 23

Construction

Question 24

FHA Loan type:

203 (h)

Answer 24

Disaster relief

Question 25

FHA Loan type: | 251

Answer 25

ARM

Question 26

FHA Loan type: | 234 (c)

Answer 26

Condo

Question 27

Is a VA Loan guaranteed?

Answer 27

Yes!

Question 28

Who is eligible for a VA Loan?

Answer 28

Veterans and their eligible spouses

Question 29

What is the MAX LTV for a VA Loan?

Answer 29

100%

Question 30

What is basic entitlement for a VA Loan?

Answer 30

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

Question 31

What is the underwriting personal certificate used for VA Loans?

Answer 31

AE = Auto Endorse

Question 32

What is the MAX late fee for a VA Loan?

Answer 32

4%

Question 33

What is the total MAX DTI for a VA Loan?

Answer 33

41%

Question 34

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

Answer 34

Yes!!

Question 35

What is the MAX origination fee for a VA Loan?

Answer 35

1%

Question 36

Which two documents work as the VA Appraisal?

Answer 36

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

Question 37

Who conducts a VA Appraisal?

Answer 37

Staff Appraisal Review (SAR)

Question 38

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

Answer 38

1.25 - 3.3%

Question 39

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

Answer 39

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

Question 40

What eligibility documentation is required for a VA Loan?

Answer 40

COE = Certificate of Eligibility

Question 41

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

Answer 41

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

Question 42

What is another name for USDA Loans?

Answer 42

Section 502

Question 43

Where can a person get a USDA Loan?

Answer 43

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

Question 44

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

Answer 44

Residential Real Property

Question 45

Are USDA Loans insured?

Answer 45

Yes!

Question 46

Do USDA Loans have monthly MIP?

Answer 46

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

Question 47

What is the income limit for a USDA Loan?

Answer 47

115% AMI (Area Median Income)

Question 48

What type of Home must a USDA Loan be?

Answer 48

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

Question 49

How does a USDA Loan define “modest”?

Answer 49

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

Question 50

USDA Loans offer what percentage LTV?

Answer 50

100%

Question 51

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

Answer 51

USDA