Xinnix Ground School UPDATED Exam
Questions and CORRECT 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. -
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 ANSWER - False
A simultaneous second mortgage is obtained at the same time as a first mortgage. - CORRECT
ANSWER - True
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 ANSWER - True
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 - False
The maximum allowable ratios for an owner-occupant when using a non-occupant 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
The 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?
Questions and CORRECT 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. -
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 ANSWER - False
A simultaneous second mortgage is obtained at the same time as a first mortgage. - CORRECT
ANSWER - True
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 ANSWER - True
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 - False
The maximum allowable ratios for an owner-occupant when using a non-occupant 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
The 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?
