The Four C's
A client's payment history affects which factor of creditworthiness?
Character
Which type of government insured loan was created for financing homes in rural areas?
USDA
Which entity would be most likely to issue a Housing Choice Voucher?
Local housing authority
Which option would be most likely to require that the mortgage is current for eligibility?
Refinance
Which does a servicer do in the non-judicial foreclosure process?
issues a Notice of Default (NOD) to the borrower
Which action may a lender take to determine a borrower's character?
Call an employer to verify employment
Which is the minimum qualifying credit score for an FHA mortgage if the client made a 3.5% down payment?
580
What is the purpose of the Veterans Affairs Supportive Housing (VASH) program?
To end veteran homelessness
What loss mitigation option may allow a borrower an FHA Partial Claim?
FHA-HAMP Loan Modification
Which option allows the borrower to avoid foreclosure by disposing of a property for an amount less than the outstanding mortgage balance?
Short Sale
When a lender inquires about how much money a borrower has saved for a down payment on a home, what factor is being considered?
Capital
A potential homebuyer with minimal savings for a down payment and a low credit score is most likely to qualify for which mortgage?
USDA
Delinquency on which type of payment can cause a lien to be placed on a client's property?
Homeowners association dues
A client who is not behind on the mortgage was recently informed of a reduction of income for two months by the client's employer. The client has an FHA loan and would like to take action as soon as possible to avoid a mortgage delinquency. Which FHA Loss Mitigation option is likely best for this client?
Informal/Formal Forbearance
Which is a campaign to inform the public about fair housing rights?
Affirmatively Furthering Fair Housing Program
A first-time buyer wants a conventional loan but does not have the assets to qualify. This client may have to purchase with an FHA loan unless the client saves more money. Which of the Four C's of Credit does this involve?
Capital
Which aspect of a loan may a client be able to modify when seeking a loan modification due to a financial hardship because of a divorce?
Loan Term
A client with limited financial resources wants to improve safety in the home to prepare for natural disasters. Which is the best resource for the client to use in researching this topic?
Which retention option would most likely offer a principal reduction?
Loan Modification
Which is the most significant benefit of using a real estate agent?
Negotiating the sale
what are the four C's of credit
Capital, character, collateral, capacity
A client has saved money for a small down payment and closing costs to purchase a $100,000 home in the city. The client is deciding whether to begin the homebuying process now or continue saving for a larger down payment. Which loan type would provide the highest monthly payment, assuming interest rates and other factors are equal?
FHA
What was the primary purpose of the Making Home Affordable program?
To assist homeowners in avoiding foreclosure
Which aspect of a loan may a client be able to modify when seeking a loan modification due to a financial hardship because of a divorce?
Loan term
A homeowner has decided to remodel the basement over the next 12 months. The project should cost just under $24,000, and the hope is to borrow the money at a very low interest rate that can be paid off over a longer period of time. Which home financing option would work best?
HELOC