FANNIE MAE UPDATED EXAM QUESTIONS AND
CORRECT ANSWERS
What Automated Underwriter does Fannie Mae use - CORRECT ANSWERS Desktop
Underwriter (DU)
Minimum Credit Score - CORRECT ANSWERS 620
Highest LTV for First Time Homebuyers (Fixed Rate Mortgage) - CORRECT ANSWERS 97%
on 1-unit primary
Highest LTV for non-First Time Homebuyer (Fixed Rate Mortgage) - CORRECT
ANSWERS 95% on 1-unit primary
Highest LTV for 2-unit primary (Fixed Rate Mortgage) - CORRECT ANSWERS 85% for both
FTHb and non-FTHb
Highest LTV for 3-4 unit primary (Fixed Rate Mortgage) - CORRECT ANSWERS 75% for both
FTHb and non-FTHb
Income Documentation Requirement - CORRECT ANSWERS 2 year history for W2 & Tax
returns & 30 day recent paystubs
What is needed if the client plans to switch jobs soon - CORRECT ANSWERS Borrowers
who are changing or starting new jobs can be approved with a signed offer letter or contract
documenting the anticipated income, but the loan cannot close without a paystub, unless a
delayed sale exception has been approved.
CORRECT ANSWERS
What Automated Underwriter does Fannie Mae use - CORRECT ANSWERS Desktop
Underwriter (DU)
Minimum Credit Score - CORRECT ANSWERS 620
Highest LTV for First Time Homebuyers (Fixed Rate Mortgage) - CORRECT ANSWERS 97%
on 1-unit primary
Highest LTV for non-First Time Homebuyer (Fixed Rate Mortgage) - CORRECT
ANSWERS 95% on 1-unit primary
Highest LTV for 2-unit primary (Fixed Rate Mortgage) - CORRECT ANSWERS 85% for both
FTHb and non-FTHb
Highest LTV for 3-4 unit primary (Fixed Rate Mortgage) - CORRECT ANSWERS 75% for both
FTHb and non-FTHb
Income Documentation Requirement - CORRECT ANSWERS 2 year history for W2 & Tax
returns & 30 day recent paystubs
What is needed if the client plans to switch jobs soon - CORRECT ANSWERS Borrowers
who are changing or starting new jobs can be approved with a signed offer letter or contract
documenting the anticipated income, but the loan cannot close without a paystub, unless a
delayed sale exception has been approved.
