1|Page
AYPO Real Estate Finance Newest
2025 UPDATE WITH COMPLETE
QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS
100%GUARANTEED PASS!!!
The FHA assists in providing mortgage insurance for all of these,
except:
A. Multi-family homes
B. Single family homes
C. Hospitals
D. Retail business establishments ......answer.....D. Retail
business establishments
FHA-Insured Loans ......answer.....They do have a listing of
approved lenders whose loans they will insure.
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FHA Lending Limits ......answer.....In order to qualify for an
FHA-backed loan a borrower must meet some general
requirements. To qualify, a borrower must:
have a steady employment history or have worked for the
same employer for two years.
hold a valid Social Security number
be a lawful resident of the U.S.
be old enough to sign a mortgage in their home state
have a housing expense ratio (costs of homeownership as
compared to gross monthly income) of less than 31%
however, if the lender can provide suitable justification, a
borrower can be approved with a housing expense ratio as
high as 46.99%
FHA Lending Limits Continued ......answer.....The borrower
cannot usually have a total-debt-to-income ratio (total debts
as compared to gross monthly income) of more than 43%. As
with the housing expense ratio, it is possible, with suitable
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justification by the lender, for a borrower to be approved
with a total-debt-to-income ratio as high as 56.99%.
In the event of a prior bankruptcy, the borrower must have
been out of bankruptcy for a minimum of two years and have
reestablished good credit. Exceptions can be made if:
the borrower has not been in bankruptcy for one year
there are extenuating circumstances beyond the borrower's
control, and
the borrower has responsibly managed their money.
In the event of a prior foreclosure, the borrower usually must
be three years beyond the foreclosure and have reestablished
good credit. It is possible for an exception to be made if there
were extenuating circumstances and the borrower has
improved their credit.
The FHA categorizes properties into four groups. ......answer.....IN-
Insurable
IE-Insurable with escrow
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UN-Uninsurable
UK-203(k) eligible
UK-203(k) eligible ......answer.....UK properties are more rare.
For properties which are listed UN, the buyer may attempt to
obtain a 203(k) loan. The standard FHA loan is a 203(b) loan.
The 203(k) loan is only available for owner-occupied
properties, i.e., the owner cannot purchase the property for
investment or renting purposes. The repairs must exceed
$5,000 (or else it would qualify as an IE property), but the
total value must be within the FHA mortgage limit. The total
value is determined by taking the lesser of the current value
plus the cost of repairs, and 110% of the expected value after
repairs.
Duration of MIP ......answer.....The standard mortgage limits,
which are used by numerous counties, are as follows:
One-Family Home: $420,680
Two-Family Home: $538,650
AYPO Real Estate Finance Newest
2025 UPDATE WITH COMPLETE
QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS
100%GUARANTEED PASS!!!
The FHA assists in providing mortgage insurance for all of these,
except:
A. Multi-family homes
B. Single family homes
C. Hospitals
D. Retail business establishments ......answer.....D. Retail
business establishments
FHA-Insured Loans ......answer.....They do have a listing of
approved lenders whose loans they will insure.
,2|Page
FHA Lending Limits ......answer.....In order to qualify for an
FHA-backed loan a borrower must meet some general
requirements. To qualify, a borrower must:
have a steady employment history or have worked for the
same employer for two years.
hold a valid Social Security number
be a lawful resident of the U.S.
be old enough to sign a mortgage in their home state
have a housing expense ratio (costs of homeownership as
compared to gross monthly income) of less than 31%
however, if the lender can provide suitable justification, a
borrower can be approved with a housing expense ratio as
high as 46.99%
FHA Lending Limits Continued ......answer.....The borrower
cannot usually have a total-debt-to-income ratio (total debts
as compared to gross monthly income) of more than 43%. As
with the housing expense ratio, it is possible, with suitable
,3|Page
justification by the lender, for a borrower to be approved
with a total-debt-to-income ratio as high as 56.99%.
In the event of a prior bankruptcy, the borrower must have
been out of bankruptcy for a minimum of two years and have
reestablished good credit. Exceptions can be made if:
the borrower has not been in bankruptcy for one year
there are extenuating circumstances beyond the borrower's
control, and
the borrower has responsibly managed their money.
In the event of a prior foreclosure, the borrower usually must
be three years beyond the foreclosure and have reestablished
good credit. It is possible for an exception to be made if there
were extenuating circumstances and the borrower has
improved their credit.
The FHA categorizes properties into four groups. ......answer.....IN-
Insurable
IE-Insurable with escrow
, 4|Page
UN-Uninsurable
UK-203(k) eligible
UK-203(k) eligible ......answer.....UK properties are more rare.
For properties which are listed UN, the buyer may attempt to
obtain a 203(k) loan. The standard FHA loan is a 203(b) loan.
The 203(k) loan is only available for owner-occupied
properties, i.e., the owner cannot purchase the property for
investment or renting purposes. The repairs must exceed
$5,000 (or else it would qualify as an IE property), but the
total value must be within the FHA mortgage limit. The total
value is determined by taking the lesser of the current value
plus the cost of repairs, and 110% of the expected value after
repairs.
Duration of MIP ......answer.....The standard mortgage limits,
which are used by numerous counties, are as follows:
One-Family Home: $420,680
Two-Family Home: $538,650
