Xinnix Ground School Mortgage Final Exam Questions & Answers Solved 100% Correct!!

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. VA sets their own maximum loan limits. - CORRECT ANSWER-False The monthly MI for an FHA loan is calculated by BASE Loan Amount x .85% /12 - CORRECT ANSWER-True Redisclosure of the Truth in Lending is required if the PAR changes more than _____% on a fixed rate loan? - CORRECT ANSWER-.125 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 - CORRECT ANSWER-True A room addition is allowed under the FHA 203(k) Limited program. - CORRECT ANSWER-False The maximum allowable ratios for an owner-occupant when using a nonoccupant co-borrower per FHLMC guidelines is ______________. - CORRECT ANSWER-35/43 A borrower is considering a 1-year ARM with a note rate of 4.25%, 2/6 caps and a margin of 2.5%. What would the borrower's interest rate be for year 2 if the index is at 4.25%? - CORRECT ANSWER-6.25% The builder must provide an appraisal certificate to the mortgage company on an FHA new construction loan prior to closing. - CORRECT ANSWER-False All of the following documents must be provided by the builder to the mortgage company on an FHA new construction loan prior to the loan being cleared to close EXCEPT: - CORRECT ANSWER-Appraisal Certificate MUST BE PROVIDED: Certificate of Occupancy, Builder's 1-Year Warranty, Insulation CertificateAfter the borrower submits a complete loan application, the LE must be delivered or placed in the mail within how many days? - CORRECT ANSWER-3 business days 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? - CORRECT ANSWER-Appraisal Certificate On an FHA loan the upfront MIP should be included when calculating cash-toclose. - CORRECT ANSWER-False The borrower must have 5% of their own funds when putting 15% down on a primary residence. (FNMA) - CORRECT ANSWER-False A 3-Year ARM adjusts every 3 years - CORRECT ANSWER-True A Loan Officer can locate the summary of the eligibility requirements for a loan to be sold to a specific lender/investor in the lender specs. - CORRECT ANSWERFalse A HELOC loan has an interest only payment - CORRECT ANSWER-True A borrower paid semi-monthly and a borrower paid bi-weekly have the same number of pay periods per year - CORRECT ANSWER-False FHA Case Numbers are tied to the property, not the borrower. - CORRECT ANSWER-True Judgments and tax liens are required to be paid off at or prior to loan closing. (FNMA/FHLMC) - CORRECT ANSWER-True Unreimbursed business expenses can be located on Form 2106 of a borrower's personal tax return. - CORRECT ANSWER-True HOA dues are included in the PITI calculation - CORRECT ANSWER-False Ms. Armstrong is paid an hourly wage of $17.50. She receives time and a half for overtime (more than 40 hours per week) and has been averaging 50 hours every week, since starting with the company five years ago. Her current paystub from 7/15 of this year shows a YTD gross income of $26,260. Her W2 from last year shows $48,048 and the year before shows $46,116. What is the monthly base income and monthly overtime income that would be entered on the 1003? (Overtime not guaranteed) - CORRECT ANSWER-$3033/$915Choose the correct relationship between the Name of the Report and mortgage interest rate tendencies. - CORRECT ANSWER-When the CPI goes UP, Rates tend to go UP When the GDP goes DOWN, rates tend to go DOWN When the Unemployment Rate goes UP, rates tend to go DOWN The following are types of renovation mortgages: - CORRECT ANSWER-FNMA HomeStyle, FHA 203(k) Unemployment income can not be used as qualifying income - CORRECT ANSWER-False What is the largest house payment Ms. Joyce can have with her current income of $92,650 per year considering she has a $525 car payment and $0 in credit cards? (FHLMC) - CORRECT ANSWER-$2,161.83 What is the maximum seller contribution allowed for an investment property at 80% LTV? (FNMA/FHLMC) - CORRECT ANSWER-2% Depreciation should be added to a borrower's income who owns several investment properties. - CORRECT ANSWER-True