XINNIX GROUND SCHOOL FINAL
STUDY EXAM QUESTIONS AND
ANSWERS
If a borrower qualifies for an agency loan of $295,750, FHA is a viable loan option -
ANSWER-True
On an FHA 203(k) Limited program purchase, a borrower is allowed up to _____ for
repairs/renovations - ANSWER-$35,000
The maximum allowable ratios for an owner-occupant co-borrower per FHLMC
guidelines is _________ - ANSWER-35/43
A simultaneous second mortgage is obtained at the same time as a first mortgage -
ANSWER-True
When considering a FHLMC loan, the maximum allowable ratios for the owner
occupant when using a non-occupant co-borrower are 35/43. - ANSWER-True
Desktop Underwriter (DU) would result in a decision of Approve/Ineligible on a loan
with excellent credit which qualifies as a jumbo loan program - ANSWER-True
The following factors are considered when determining the principal limit (maximum
loan amount) for a reverse mortgage - ANSWER-Amount of existing mortgage debt,
property value, age of the youngest borrower
Which document is not necessary for the builder provide to the mortgage company
on an FHA new construction loan prior to the loan being cleared to close? -
ANSWER-Appraisal Certificate
FHLMC qualifying ratios are 28/36 - ANSWER-True
Your borrower is paid $1,950 bi-weekly and has been on his job for three years. His
wife works part time and makes 10.25 an hour. She works 20 hours per week and
has been on her job for two years. What is their combined monthly income -
ANSWER-$5,113.... 1,950x26./12...10.25x20=..x52/12...add both together
Your borrower is being relocated and needs to close on the purchase of their new
home in thirty days. Their spouse will not be moving for another six months. How
much income can be used for qualifying if the relocating borrower is earning $92,000
annually and the trailing spouse is earning $36,000 annually? (FNMA) - ANSWER-
$7,666...(cant use trailing spouse income - 92000/12=)
DU does not consider non-occupant income as qualifying income - ANSWER-True
An FHA 203(k) Standard program would require a HUD Consultant. - ANSWER-True
, If the VA maximum entitlement has been changed by law, a veteran's COE may
show an available amount which is less than the VA maximum allowable entitlement.
- ANSWER-True
HOA dues should be added to the PITI for the purpose of calculating ratios when
qualifying a borrower. - ANSWER-True
What is the funding fee for a veteran who has not used his/her eligibility and plans on
purchasing a home with 5% down payment? - ANSWER-1.65%
If a veteran has previously used their VA entitlement and it has not yet been
restored, their COE may show an available amount which is less that the VA
maximum allowable entitlement - ANSWER-True
The maximum LTV for a 1-unit investment property is 95% (FHLMC) - ANSWER-
False
Reimbursed business expenses are _________ to the borrower's gross income -
ANSWER-Added to
A sole proprietor's new profit or loss can be located on Schedule C of their personal
tax return - ANSWER-True
A 3-Year ARM adjusts every 3 years - ANSWER-True
A borrower must have 5% of their own funds when putting 15% down on a primary
residence (FNMA) - ANSWER-False
A 3/1 ARM will have an initial fixed rate for 3 years, then adjust annually - ANSWER-
True
Joint tenants with right of survivorship (JTWROS) is an acceptable manner in which
title may be held - ANSWER-True
If a borrower qualifies for an agency loan of $215,000, FHLMC is a viable loan option
- ANSWER-True
Unless a borrower can document extenuating circumstances they must wait at least
7 years from a Chapter 7 bankruptcy - ANSWER-False
FNMA and FHLMC define a large deposit as any single deposit that exceeds 50% of
the borrower's total monthly qualifying - ANSWER-True
A HUD consultant would not be required for an FHA 203(k) Standard program -
ANSWER-False
A borrower's income is a factor considered when determining the principal limit
(maximum loan amount) for a reverse mortgage - ANSWER-False
STUDY EXAM QUESTIONS AND
ANSWERS
If a borrower qualifies for an agency loan of $295,750, FHA is a viable loan option -
ANSWER-True
On an FHA 203(k) Limited program purchase, a borrower is allowed up to _____ for
repairs/renovations - ANSWER-$35,000
The maximum allowable ratios for an owner-occupant co-borrower per FHLMC
guidelines is _________ - ANSWER-35/43
A simultaneous second mortgage is obtained at the same time as a first mortgage -
ANSWER-True
When considering a FHLMC loan, the maximum allowable ratios for the owner
occupant when using a non-occupant co-borrower are 35/43. - ANSWER-True
Desktop Underwriter (DU) would result in a decision of Approve/Ineligible on a loan
with excellent credit which qualifies as a jumbo loan program - ANSWER-True
The following factors are considered when determining the principal limit (maximum
loan amount) for a reverse mortgage - ANSWER-Amount of existing mortgage debt,
property value, age of the youngest borrower
Which document is not necessary for the builder provide to the mortgage company
on an FHA new construction loan prior to the loan being cleared to close? -
ANSWER-Appraisal Certificate
FHLMC qualifying ratios are 28/36 - ANSWER-True
Your borrower is paid $1,950 bi-weekly and has been on his job for three years. His
wife works part time and makes 10.25 an hour. She works 20 hours per week and
has been on her job for two years. What is their combined monthly income -
ANSWER-$5,113.... 1,950x26./12...10.25x20=..x52/12...add both together
Your borrower is being relocated and needs to close on the purchase of their new
home in thirty days. Their spouse will not be moving for another six months. How
much income can be used for qualifying if the relocating borrower is earning $92,000
annually and the trailing spouse is earning $36,000 annually? (FNMA) - ANSWER-
$7,666...(cant use trailing spouse income - 92000/12=)
DU does not consider non-occupant income as qualifying income - ANSWER-True
An FHA 203(k) Standard program would require a HUD Consultant. - ANSWER-True
, If the VA maximum entitlement has been changed by law, a veteran's COE may
show an available amount which is less than the VA maximum allowable entitlement.
- ANSWER-True
HOA dues should be added to the PITI for the purpose of calculating ratios when
qualifying a borrower. - ANSWER-True
What is the funding fee for a veteran who has not used his/her eligibility and plans on
purchasing a home with 5% down payment? - ANSWER-1.65%
If a veteran has previously used their VA entitlement and it has not yet been
restored, their COE may show an available amount which is less that the VA
maximum allowable entitlement - ANSWER-True
The maximum LTV for a 1-unit investment property is 95% (FHLMC) - ANSWER-
False
Reimbursed business expenses are _________ to the borrower's gross income -
ANSWER-Added to
A sole proprietor's new profit or loss can be located on Schedule C of their personal
tax return - ANSWER-True
A 3-Year ARM adjusts every 3 years - ANSWER-True
A borrower must have 5% of their own funds when putting 15% down on a primary
residence (FNMA) - ANSWER-False
A 3/1 ARM will have an initial fixed rate for 3 years, then adjust annually - ANSWER-
True
Joint tenants with right of survivorship (JTWROS) is an acceptable manner in which
title may be held - ANSWER-True
If a borrower qualifies for an agency loan of $215,000, FHLMC is a viable loan option
- ANSWER-True
Unless a borrower can document extenuating circumstances they must wait at least
7 years from a Chapter 7 bankruptcy - ANSWER-False
FNMA and FHLMC define a large deposit as any single deposit that exceeds 50% of
the borrower's total monthly qualifying - ANSWER-True
A HUD consultant would not be required for an FHA 203(k) Standard program -
ANSWER-False
A borrower's income is a factor considered when determining the principal limit
(maximum loan amount) for a reverse mortgage - ANSWER-False
