Xinnix Ground School Exam Questions with 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.