XINNIX GROUND SCHOOL QUESTIONS
& ANSWERS WITH COMPLETE
SOLUTIONS GRADED A+
QUESTIONS AND ANSWERS
Flipping is a scheme where several people each purchase a property within the
neighborhood and then sell the properties to one another, inflating the price of the
home with each sale.. ANSWER -False
YTD paystubs will be requires from a borrower that is self-employed (schedule C).
ANSWER -False
A borrower requesting a jumbo loan will qualify for an agency loan. ANSWER -False
Trailing spouse income can be used for qualifying purposes.. ANSWER -False
The following are types of renovation mortgages. ANSWER -FNMA Homestyle and
FHA 203(K)
The maximum LTV for a 1-unit investment property is 95%. ANSWER -False
A simultaneous second mortgage is obtained at the same time as a first mortgage..
ANSWER -True
The builder must provide an appraisal certificate to the mortgage company on a FHA
new construction loan prior to closing.. ANSWER -False
HOA dues are included in the PITI calculation. ANSWER -False
A room addition is allowed under the FHA 203(K) limited programs.. ANSWER -
False
Loans with an LTV higher than 80% generally require mortgage insurance..
ANSWER -True
,Tenancy in Common is not an acceptable manner in which title may be held..
ANSWER -False
FHA guidelines require 3 years to have passed since a foreclosure, deed in lieu, or
short sale before a borrower may apply for an FHA loan. ANSWER -True
If a borrower qualifies for an agency loan of $295,750, FHA is a viable loan option..
ANSWER -True
A borrower's brother would like to give her money to help towards the down payment
of her new house. This would be considered______. ANSWER -A gift from a relative
and would require a gift letter, as well as proof that the funds have been transferred to
the borrower's account.
Depreciation should be added to a borrower's income who owns several investment
properties.. ANSWER -True
Unless a borrower can document extenuating circumstances, they must wait at least 7
years from a Chapter 7 bankruptcy or foreclosure to apply for conventional financing.
ANSWER -False
A HUD Consultant would not be required for an FHA 203(k) standard program.
ANSWER -False
A partner's percentage of ownership and earnings can be located on Schedule E part 2
of their personal tax returns. ANSWER -False
, VA sets their own maximum loan limits.. ANSWER -False
The maximum allowable ratios for an owner-occupant when using a non-occupant co-
borrower per FHLMC guidlines is ________.. ANSWER -35/43
Reimbursed business expenses are ________________ ___________ the borrowers
gross income.. ANSWER -Added to
Unreimbursed business expenses ___________ the borrower's income. ANSWER -are
subtracted from
If your borrower is being relocated and needs to close in 30-days, and their spouse
will not be moving for 3 months, the spouse's income can still be used to qualify..
ANSWER -False
Income or losses derived from partnerships can be located on Schedule K-1 of a
borrower's personal tax return.. ANSWER -False
If a borrower tell you about a liability that is not listed on the credit report, it doesn't
need to be included on the loan application. ANSWER -False
A liability not listed on the credit report will typically need to be included on the loan
application.. ANSWER -True
& ANSWERS WITH COMPLETE
SOLUTIONS GRADED A+
QUESTIONS AND ANSWERS
Flipping is a scheme where several people each purchase a property within the
neighborhood and then sell the properties to one another, inflating the price of the
home with each sale.. ANSWER -False
YTD paystubs will be requires from a borrower that is self-employed (schedule C).
ANSWER -False
A borrower requesting a jumbo loan will qualify for an agency loan. ANSWER -False
Trailing spouse income can be used for qualifying purposes.. ANSWER -False
The following are types of renovation mortgages. ANSWER -FNMA Homestyle and
FHA 203(K)
The maximum LTV for a 1-unit investment property is 95%. ANSWER -False
A simultaneous second mortgage is obtained at the same time as a first mortgage..
ANSWER -True
The builder must provide an appraisal certificate to the mortgage company on a FHA
new construction loan prior to closing.. ANSWER -False
HOA dues are included in the PITI calculation. ANSWER -False
A room addition is allowed under the FHA 203(K) limited programs.. ANSWER -
False
Loans with an LTV higher than 80% generally require mortgage insurance..
ANSWER -True
,Tenancy in Common is not an acceptable manner in which title may be held..
ANSWER -False
FHA guidelines require 3 years to have passed since a foreclosure, deed in lieu, or
short sale before a borrower may apply for an FHA loan. ANSWER -True
If a borrower qualifies for an agency loan of $295,750, FHA is a viable loan option..
ANSWER -True
A borrower's brother would like to give her money to help towards the down payment
of her new house. This would be considered______. ANSWER -A gift from a relative
and would require a gift letter, as well as proof that the funds have been transferred to
the borrower's account.
Depreciation should be added to a borrower's income who owns several investment
properties.. ANSWER -True
Unless a borrower can document extenuating circumstances, they must wait at least 7
years from a Chapter 7 bankruptcy or foreclosure to apply for conventional financing.
ANSWER -False
A HUD Consultant would not be required for an FHA 203(k) standard program.
ANSWER -False
A partner's percentage of ownership and earnings can be located on Schedule E part 2
of their personal tax returns. ANSWER -False
, VA sets their own maximum loan limits.. ANSWER -False
The maximum allowable ratios for an owner-occupant when using a non-occupant co-
borrower per FHLMC guidlines is ________.. ANSWER -35/43
Reimbursed business expenses are ________________ ___________ the borrowers
gross income.. ANSWER -Added to
Unreimbursed business expenses ___________ the borrower's income. ANSWER -are
subtracted from
If your borrower is being relocated and needs to close in 30-days, and their spouse
will not be moving for 3 months, the spouse's income can still be used to qualify..
ANSWER -False
Income or losses derived from partnerships can be located on Schedule K-1 of a
borrower's personal tax return.. ANSWER -False
If a borrower tell you about a liability that is not listed on the credit report, it doesn't
need to be included on the loan application. ANSWER -False
A liability not listed on the credit report will typically need to be included on the loan
application.. ANSWER -True
