Xinnix Ground School Questions & Answers Solved 100% Correct!!

The builder must provide an appraisal certificate to the mortgage company on a FHA new construction loan prior to closing. - CORRECT ANSWER-False HOA dues are included in the PITI calculation - CORRECT ANSWER-False A room addition is allowed under the FHA 203(K) limited programs. - CORRECT ANSWER-False Loans with an LTV higher than 80% generally require mortgage insurance. - CORRECT ANSWER-True Tenancy in Common is not an acceptable manner in which title may be held. - CORRECT 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 - CORRECT ANSWERTrue If a borrower qualifies for an agency loan of $295,750, FHA is a viable loan option. - CORRECT 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______ - CORRECT 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. - CORRECT 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 - CORRECT ANSWER-False A HUD Consultant would not be required for an FHA 203(k) standard program - CORRECT ANSWER-False A partner's percentage of ownership and earnings can be located on Schedule E part 2 of their personal tax returns - CORRECT ANSWER-False VA sets their own maximum loan limits. - CORRECT ANSWER-FalseThe maximum allowable ratios for an owner-occupant when using a nonoccupant co-borrower per FHLMC guidlines is ________. - CORRECT ANSWER- 35/43 Reimbursed business expenses are ________________ ___________ the borrowers gross income. - CORRECT ANSWER-Added to Unreimbursed business expenses ___________ the borrower's income - CORRECT 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. - CORRECT ANSWER-False Income or losses derived from partnerships can be located on Schedule K-1 of a borrower's personal tax return. - CORRECT 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 - CORRECT ANSWER-False A liability not listed on the credit report will typically need to be included on the loan application. - CORRECT ANSWER-True 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. - CORRECT ANSWER-False YTD paystubs will be requires from a borrower that is self-employed (schedule C) - CORRECT ANSWER-False A borrower requesting a jumbo loan will qualify for an agency loan - CORRECT ANSWER-False Trailing spouse income can be used for qualifying purposes. - CORRECT ANSWER-False The following are types of renovation mortgages - CORRECT ANSWER-FNMA Homestyle and FHA 203(K) The maximum LTV for a 1-unit investment property is 95% - CORRECT ANSWERFalse A simultaneous second mortgage is obtained at the same time as a first mortgage. - CORRECT ANSWER-TrueThe borrower does not want their P&I payments to go above $1,250 per month on a 30-year term. With an interest rate of 6.5 what is the maximum loan amount for this borrower? (Round to the nearest 50) - CORRECT ANSWER-$197,750 (Hint: type in what you know) Based on the following scenario, what is the borrower's qualifying ratios under FHLMC guidelines? PITI: $3,350 Income: $8,350 Debt: $595 car payment - CORRECT ANSWER-40.12/47.25 (Hint: PITI/Income and PITI + Debt/Income)