Xinnix Ground School Mortgage Final Exam Questions with Correct Answers

On an FHA loan the upfront MIP should be included when calculating cash-to-close. 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 Answer False 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 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