XINNIX GROUND SCHOOL FINAL EXAM ACTUAL
QUESTIONS AND SOLUTIONS RATED A+
✔✔Using the following information, answer the following conventional loan question.
Sales Price = $143,000
Down Payment = $21,450
2/1 Buydown
20-year fixed rate
Owner-occupied
What is the LTV/MI Factor/Monthly MI payment? - ✔✔Not 85%/.34%/34.44
✔✔What is the qualifying rate for a 3/1 ARM with a note rate of 4.25% and 2/6 caps?
The fully-indexed rate is 6.38% - ✔✔Not 5.25%
✔✔Using the information provided, answer the following FHA question:
Sales Price = $137,300
Interest Rate = 6.875%
30-year fixed
Taxes = 1.5%
Homeowners Insurance = .3%
What is the PITI? - ✔✔NOt 1091.59
✔✔The borrower does not want their P&I payment 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? - ✔✔Not 198,000
✔✔Using the information provided, answer the following cash-out question using
FNMA: (do NOT round the loan down)
Value = $350,000
Current balance = $228,000
Current payment = $1,920
Cash requested = $20,000
Taxes = $270 monthly
Homeowners insurance = $75 monthly
Closing Costs = 2.5%
Prepaids = 1%
What is their new loan amount and proposed monthly payment (PITI) based on a 30- -
✔✔Not 259,120
✔✔Which of the following loan options would be best for a borrower looking to stay in
the home for 3 years? - ✔✔NOt 5/1 ARM
, ✔✔What is the maximum house payment Ms. Campese can afford with her current
income of $104,400 per year, $300 car payment, $350 student loan and $50 credit card
payment? (FHLMC) - ✔✔Not 2386
✔✔Chris earns $36,000 per year from his primary job. He also has a 2nd job in the
same line of work earning $11.25 per hour. He is only able to work 12 hours a week on
the 2nd job but has been doing so for 8 months. What is his monthly qualifying income?
- ✔✔Not 3585
✔✔A veteran may be exempt from the VA Funding Fee if - ✔✔Receives benefits for a
service related disability
✔✔Desktop Underwriter would result in a decision of Approve/Ineligible on a loan with
excellent credit which qualifies as a jumbo loan program - ✔✔True
✔✔On an FHA 203(k) Limited program purchase - ✔✔35,000
✔✔A partners percentage of ownership and earnings can be located on Schedule E
part 11 of their personal tax returns - ✔✔False
✔✔Unless a borrower can document extenuating circumstances they must wait at least
7 years from a Chapter 7 bankruptcy - ✔✔False
✔✔HOA dues are included in the PITI calculation - ✔✔False
✔✔FHA loans have both a BASE Loan Amount and Total Loan Amount - ✔✔True
✔✔The funding fee for an active duty veteran who has previously used their eligibility
and is purchasing a home with zero down is 3.60% - ✔✔True
✔✔The maximum LTV for a 1 unit investment property is 95% (FHLMC) - ✔✔False
✔✔If a borrower qualifies for an agency loan of $295,750, FHA is a viable loan option -
✔✔True
✔✔Trailing spouse income can be used for qualifying purposes - ✔✔False
✔✔A borrower that is self-employed (Schedule C0 will typically not be required to
provide a YTD paystub - ✔✔True
✔✔The following are types of renovation mortgages - ✔✔Homestyle FHA 203K
QUESTIONS AND SOLUTIONS RATED A+
✔✔Using the following information, answer the following conventional loan question.
Sales Price = $143,000
Down Payment = $21,450
2/1 Buydown
20-year fixed rate
Owner-occupied
What is the LTV/MI Factor/Monthly MI payment? - ✔✔Not 85%/.34%/34.44
✔✔What is the qualifying rate for a 3/1 ARM with a note rate of 4.25% and 2/6 caps?
The fully-indexed rate is 6.38% - ✔✔Not 5.25%
✔✔Using the information provided, answer the following FHA question:
Sales Price = $137,300
Interest Rate = 6.875%
30-year fixed
Taxes = 1.5%
Homeowners Insurance = .3%
What is the PITI? - ✔✔NOt 1091.59
✔✔The borrower does not want their P&I payment 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? - ✔✔Not 198,000
✔✔Using the information provided, answer the following cash-out question using
FNMA: (do NOT round the loan down)
Value = $350,000
Current balance = $228,000
Current payment = $1,920
Cash requested = $20,000
Taxes = $270 monthly
Homeowners insurance = $75 monthly
Closing Costs = 2.5%
Prepaids = 1%
What is their new loan amount and proposed monthly payment (PITI) based on a 30- -
✔✔Not 259,120
✔✔Which of the following loan options would be best for a borrower looking to stay in
the home for 3 years? - ✔✔NOt 5/1 ARM
, ✔✔What is the maximum house payment Ms. Campese can afford with her current
income of $104,400 per year, $300 car payment, $350 student loan and $50 credit card
payment? (FHLMC) - ✔✔Not 2386
✔✔Chris earns $36,000 per year from his primary job. He also has a 2nd job in the
same line of work earning $11.25 per hour. He is only able to work 12 hours a week on
the 2nd job but has been doing so for 8 months. What is his monthly qualifying income?
- ✔✔Not 3585
✔✔A veteran may be exempt from the VA Funding Fee if - ✔✔Receives benefits for a
service related disability
✔✔Desktop Underwriter would result in a decision of Approve/Ineligible on a loan with
excellent credit which qualifies as a jumbo loan program - ✔✔True
✔✔On an FHA 203(k) Limited program purchase - ✔✔35,000
✔✔A partners percentage of ownership and earnings can be located on Schedule E
part 11 of their personal tax returns - ✔✔False
✔✔Unless a borrower can document extenuating circumstances they must wait at least
7 years from a Chapter 7 bankruptcy - ✔✔False
✔✔HOA dues are included in the PITI calculation - ✔✔False
✔✔FHA loans have both a BASE Loan Amount and Total Loan Amount - ✔✔True
✔✔The funding fee for an active duty veteran who has previously used their eligibility
and is purchasing a home with zero down is 3.60% - ✔✔True
✔✔The maximum LTV for a 1 unit investment property is 95% (FHLMC) - ✔✔False
✔✔If a borrower qualifies for an agency loan of $295,750, FHA is a viable loan option -
✔✔True
✔✔Trailing spouse income can be used for qualifying purposes - ✔✔False
✔✔A borrower that is self-employed (Schedule C0 will typically not be required to
provide a YTD paystub - ✔✔True
✔✔The following are types of renovation mortgages - ✔✔Homestyle FHA 203K
