FHA
What is the minimum down payment for an FHA loan?
3.5%
What two veteran documents are needed to prove they can get a VA Loan?
What is the minimum loan to value for a construction loan? (down payment)
What is the minimum down payment requirement?
3% for a first time home buyer, 5% for all others
What is loan to value?
This ratio compares the loan amount to the property's value and is a key factor in conventional underwriting.
What are the maximum seller concessions allowed?
6%
What is the maximum seller concessions allowed?
4%
What are the two most important documents needed for the construction department specifically?
Certified plans and a full detailed estimated from a contractor.
Less than 10% down 3%
10%–24.99% down 6%
25% or more down9%
If a client has a lower credit score what is one compensating factor that might trigger approval?
Low debt to income, additional assets/reserves, higher down payment.
How long will an FHA appraisal's value stay with a home?
6 months
Anyone!!!-this is new! Previously only a spouse could be on the VA loan with a Veteran as the primary borrower. Now a parent, sibling, fiance, business partner, any non veteran can be the coborrower.
What are interest-only payments?
During construction, borrowers typically make this type of payment on the amount that has been disbursed.
When will PMI automatically drop off?
78%
What is conditional approval?
This underwriting decision means the loan can be approved once specified conditions are satisfied.
When obtaining an FHA loan we have to search everyone through a CAVIRS data base, what is the purpose of this data base?
It is a student loan data base, if they name pops up in this data base it will let us know if they are delinquent or default on any student loans, to proceed with the loan we have to make sure they are current and in good standing before they can obtain an FHA loan or any government loan.
What would make a client exempt from having to pay the VA funding fee? Bonus 50 points- what is a funding fee?
If the veteran receives any VA disability income they will be exempt from the VA funding fee on any loan.
VA funding fee is a one time fee charged on a VA loan which helps fund the VA loan program so they can keep offering benefits
What are draw inspections?
Before the lender releases funds during construction, this inspection is typically performed to verify the percentage of work completed. **There are usually 4-6 draw inspections during the process.
What are loan level pricing adjustments?
Fannie Mae and Freddie Mac use these risk-based pricing adjustments that can affect a borrower's interest rate or costs based on credit score and LTV.
Which credit bureaus do we pull to obtain the clients credit score?
**Bonus 50 points if you can tell me which score is used?
Experian, Transunion, Equifax
Whichever is the middle score is their representing credit score used.
What are 2 FHA specific factors that will automatically make an appraisal come back "subject to"?
Broken window, peeling paint, hand rail for stair case, water damage, working exterior doors, exposed wires, no holes in floors or walls, and probably more.
What is restoration entitlement?
A veteran who sells a home and pays off the VA loan may apply for this benefit to use their VA loan benefit again.
What is the difference between a one time close and a two time close construction loan?
One-Time Close = One closing, one underwriting process
Two-Time Close = Construction loan first, mortgage loan later.
Who are Fannie Mae/Freddie Mac?
These government-sponsored enterprise commonly purchases conventional loans on the secondary market.
What is a clients debt to income ratio?
The first half of the ratio is their total debt obligation divided by their gross income, the back half of the ratio is their total debt obligation plus their projected mortgage payment divided by their gross income.