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. -
Answer-✅False
/.The borrower must have 5% of their own funds when putting 15% down on a primary
residence. (FNMA) - Answer-✅False
/.A 3-Year ARM adjusts every 3 years - 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. - Answer-✅False
/.A HELOC loan has an interest only payment - Answer-✅True
/.A borrower paid semi-monthly and a borrower paid bi-weekly have the same number
of pay periods per year - Answer-✅False
/.FHA Case Numbers are tied to the property, not the borrower. - Answer-✅True
/.Judgments and tax liens are required to be paid off at or prior to loan closing.
(FNMA/FHLMC) - Answer-✅True
/.Unreimbursed business expenses can be located on Form 2106 of a borrower's
personal tax return. - Answer-✅True
/.HOA dues are included in the PITI calculation - 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.... - 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. - Answer-✅False
/.The monthly MI for an FHA loan is calculated by BASE Loan Amount x .85% /12 -
Answer-✅True
, /.Redisclosure of the Truth in Lending is required if the PAR changes more than
_____% on a fixed rate loan? - 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 - Answer-✅True
/.A room addition is allowed under the FHA 203(k) Limited program. - Answer-✅False
/.The maximum allowable ratios for an owner-occupant when using a non-occupant co-
borrower per FHLMC guidelines is ______________. - 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%? - Answer-✅6.25%
/.The builder must provide an appraisal certificate to the mortgage company on an FHA
new construction loan prior to closing. - 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: - Answer-✅Appraisal Certificate
MUST BE PROVIDED: Certificate of Occupancy, Builder's 1-Year Warranty, Insulation
Certificate
/.After the borrower submits a complete loan application, the LE must be delivered or
placed in the mail within how many days? - 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? - Answer-
✅Appraisal Certificate
/.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) - Answer-✅$3033/$915
/.Choose the correct relationship between the Name of the Report and mortgage
interest rate tendencies. - Answer-✅When the CPI goes UP, Rates tend to go UP
When the GDP goes DOWN, rates tend to go DOWN
Exam Questions With Correct
Answers
/.On an FHA loan the upfront MIP should be included when calculating cash-to-close. -
Answer-✅False
/.The borrower must have 5% of their own funds when putting 15% down on a primary
residence. (FNMA) - Answer-✅False
/.A 3-Year ARM adjusts every 3 years - 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. - Answer-✅False
/.A HELOC loan has an interest only payment - Answer-✅True
/.A borrower paid semi-monthly and a borrower paid bi-weekly have the same number
of pay periods per year - Answer-✅False
/.FHA Case Numbers are tied to the property, not the borrower. - Answer-✅True
/.Judgments and tax liens are required to be paid off at or prior to loan closing.
(FNMA/FHLMC) - Answer-✅True
/.Unreimbursed business expenses can be located on Form 2106 of a borrower's
personal tax return. - Answer-✅True
/.HOA dues are included in the PITI calculation - 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.... - 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. - Answer-✅False
/.The monthly MI for an FHA loan is calculated by BASE Loan Amount x .85% /12 -
Answer-✅True
, /.Redisclosure of the Truth in Lending is required if the PAR changes more than
_____% on a fixed rate loan? - 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 - Answer-✅True
/.A room addition is allowed under the FHA 203(k) Limited program. - Answer-✅False
/.The maximum allowable ratios for an owner-occupant when using a non-occupant co-
borrower per FHLMC guidelines is ______________. - 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%? - Answer-✅6.25%
/.The builder must provide an appraisal certificate to the mortgage company on an FHA
new construction loan prior to closing. - 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: - Answer-✅Appraisal Certificate
MUST BE PROVIDED: Certificate of Occupancy, Builder's 1-Year Warranty, Insulation
Certificate
/.After the borrower submits a complete loan application, the LE must be delivered or
placed in the mail within how many days? - 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? - Answer-
✅Appraisal Certificate
/.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) - Answer-✅$3033/$915
/.Choose the correct relationship between the Name of the Report and mortgage
interest rate tendencies. - Answer-✅When the CPI goes UP, Rates tend to go UP
When the GDP goes DOWN, rates tend to go DOWN
