Xinnix Ground School Final Exam Study

Xinnix Ground School Final Exam Study Which of the following is the correct list of charges included when calculating the borrower's cash-to-close? - Correct Answers Down payment, closing costs, prepaids, discount points, MI paid in cash (UFMIP/FF) There is no minimum needed to run/submit both HomeOne and Home Possible through an automated underwriting system - Correct Answers True A partner's percentage of ownership and earnings can be located on Schedule E part II of their personal tax returns - Correct Answers False lender-paid mortgage insurance (LPMI) is a one-time single premium paid by the lender. In turn, the lender increases the borrower's interest rate to cover the cost of the mortgage insurance paid on their behalf - Correct Answers True Except for high-cost areas, the maximum loan amount on a 1-unit, single family residence is $647,200 - Correct Answers True A borrower who has made an offer on a property, but has not yet provided their paystubs, bank statements and W2s would be issued what letter? - Correct Answers Pre-Qualification Letter Judgements and tax liens are required to be paid off at or prior to closing (FNMA/FHLMC) - Correct Answers True HomeOne will allow up to 97% LTV for a primary residence, 1-Unit purchase if at least one of the borrowers has not owned a home in the last 3 years. A borrower who has not owned a home in the last three years is considered a first-time home buyer under HomeOne - Correct Answers True If a student loan payment is deferred, it does not have to be included in the borrowers ratios (FNMA/FHLMC) - Correct Answers False FHA Case Numbers are tied to the property, not the borrower. - Correct Answers True YTD paystubs will be required from a borrower that is self-employed (Schedule C). - Correct Answers False A borrower that is self-employed (Schedule C) will typically not be required to provide a YTD paystub - Correct Answers True The builder must provide an appraisal certificate to the mortgage company on an FHA new construction loan prior to closing - Correct Answers False What is the maximum seller contribution allowed for a primary residence at 85% LTV (FNMA/FHLMC) - Correct Answers 6% When taking an application for a VA loan on new construction, it is very important to order the appraisal: - Correct Answers When the house is completed A tax-service fee is a non-allowable fee by FHA - Correct Answers True If gift funds will be utilized in the purchase, what documentation is required? - Correct Answers Gift letter stating the amount of the gift, that it doesn't need to be repaid, and the donor is a family member. Verification that the donor has the funds available to make the gift. and Verification that the borrower has deposited the funds into an account Residual income is the amount of income available for family support after taxes and social security expense have been subtracted from the gross income and after PITI and other long-term debt has been paid - Correct Answers True Joint tenants with right of survivorship (JTWROS) is an acceptable manner in which title may be held - Correct Answers True If a borrower qualifies for an agency loan of $215,000, FHLMC is a viable loan option - Correct Answers True Unless a borrower can document extenuating circumstances they must wait at least 7 years from a Chapter 7 bankruptcy - Correct Answers False FNMA and FHLMC define a large deposit as any single deposit that exceeds 50% of the borrower's total monthly qualifying - Correct Answers True A HUD consultant would not be required for an FHA 203(k) Standard program - Correct Answers False A borrower's income is a factor considered when determining the principal limit (maximum loan amount) for a reverse mortgage - Correct Answers False Based on a loan amount of $225,000, how many years will it take your customer to break-even if they choose to pay 1.5% in discount points to secure an interest rate of 6.00% as opposed to zero points for a 6.25% rate? - Correct Answers 7.73 years What is the maximum seller contribution allowed for an investment property at 80% LTV? (FNMA/FHLMC) - Correct Answers 2% Relief Refinance Program loans are designed to help homeowners who are current on their mortgage payments but are unable to refinance due to a drop in their home value. - Correct Answers True Your borrower receives quarterly bonuses and wants to pay down their mortgage. Their current balance is $289,900 and their interest rate is 6.625% on an interest-only loan. What is their new monthly payment if they pay $30,000 towards the principal balance - Correct Answers $1,434.87 (289,900-30,000=259,900...x.06625=17,218.375/12=1,434.87) The maximum LTV for an FHA cash-out refinance is 80% - Correct Answers True 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: - Correct Answers Appraisal Certificate Three different categories of non-US citizens that may apply for a mortgage loan and may or may not qualify are: - Correct Answers Resident Aliens, Non-Resident Aliens, and Foreign Nationals Revolving and open-end accounts can be omitted from the debt ratio if the minimum monthly required payment will pay off the account in less than 10 months - Correct Answers False When using automated underwriting for a FNMA loan, DU will determine the borrower's reserve requirement for an investment property - Correct Answers True FNMA and FHLMC are fully backed by the U.S. Government - Correct Answers True A stand alone second mortgage is obtained separately from a first mortgage - Correct Answers True If a borrower qualifies for an agency loan of $295,750, FHA is a viable loan option - Correct Answers True On an FHA 203(k) Limited program purchase, a borrower is allowed up to _____ for repairs/renovations - Correct Answers $35,000 The maximum allowable ratios for an owner-occupant co-borrower per FHLMC guidelines is _________ - Correct Answers 35/43 A simultaneous second mortgage is obtained at the same time as a first mortgage - Correct Answers True When considering a FHLMC loan, the maximum allowable ratios for the owner occupant when using a non-occupant co-borrower are 35/43. - Correct Answers True Desktop Underwriter (DU) would result in a decision of Approve/Ineligible on a loan with excellent credit which qualifies as a jumbo loan program - Correct Answers True The following factors are considered when determining the principal limit (maximum loan amount) for a reverse mortgage - Correct Answers Amount of existing mortgage debt, property value, age of the youngest borrower 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? - Correct Answers Appraisal Certificate FHLMC qualifying ratios are 28/36 - Correct Answers True Your borrower is paid $1,950 bi-weekly and has been on his job for three years. His wife works part time and makes 10.25 an hour. She works 20 hours per week and has been on her job for two years. What is their combined monthly income - Correct Answers $5,113.... 1,950x26./12...10.25x20=..x52/12...add both together Your borrower is being relocated and needs to close on the purchase of their new home in thirty days. Their spouse will not be moving for another six months. How much income can be used for qualifying if the relocating borrower is earning $92,000 annually and the trailing spouse is earning $36,000 annually? (FNMA) - Correct Answers $7,666...(cant use trailing spouse income - 92000/12=) DU does not consider non-occupant income as qualifying income - Correct Answers True An FHA 203(k) Standard program would require a HUD Consultant. - Correct Answers True If the VA maximum entitlement has been changed by law, a veteran's COE may show an available amount which is less than the VA maximum allowable entitlement. - Correct Answers True HOA dues should be added to the PITI for the purpose of calculating ratios when qualifying a borrower. - Correct Answers True What is the funding fee for a veteran who has not used his/her eligibility and plans on purchasing a home with 5% down payment? - Correct Answers 1.65%