CREDIT REPORTS
Name the three major credit bureaus
Experian
Equifax
Trans Union
True or false
Gifts are allowed on all types of properties
False - gifts are not allowed on investment properties
Put these derogatory events in order of most damaging to your credit report.
Chap 7 Bankruptcy
Foreclosure
Short Sale/Deed in Lieu of Foreclosure
Chap 13 Bankruptcy
Foreclosure
Short Sale/Deed in Lieu of Foreclosure
Chap 7 Bankruptcy
Chap 13 Bankruptcy
Name the two GSE's for conventional loans
Fannie Mae and Freddie Mac
Name the three property types used in the mortgage industry.
Primary
Secondary
Investment
True or False
After paying off a balance on a credit card, you should close that account.
False - credit capacity is a factor in determining credit score
True or False
A labor union is an acceptable donor source for an FHA loan.
True
Acceptable gift donors for FHA loans are:
True or False
As a buyer, you need to wait 7 years from completion date of a foreclosure in order to qualify for a conventional loan.
True
For conventional loan, the seasoning period is 7 years, 3 years for FHA and USDA and 2 years for VA following a foreclosure.
Name the two types of loans DHI offers with 100% financing.
USDA and VA
True or False
You can have two second homes at Heather Glen as long as one of them is a duet.
False
Name three of the five factors that determine your credit score
Payment History
Capacity
Length of Credit History
Type of credit
Inquiries
True or False
On an FHA loan, if the gift funds are wired directly to the attorney prior to closing, the loan will not have to pass through the DHI FHA gift audit process.
False
All FHA gifts need to pass through the DHI FHA gift audit process.
Of the four loan types, which three require a 1 year payout has elapsed and payment performance is satisfactory in order to qualify for a new loan following a Chapter 13 bankruptcy?
FHA, VA and USDA
Conventional loans require 2 years from the date the bankruptcy was completed.
Name the 4 types of loans offered by DHI Mortgage
Conventional
VA
FHA
USDA
True or False
Underwriting can count the income from an investment property against the debt ratios even if the property is not shown on the previous years' tax returns on Schedule E.
True
If the property was recently acquired, underwriting will request the lease. First month rent and security deposit are required.
What are the three types of credit tradelines?
Revolving
Installment
Mortgage
What is the maximum SPCC the seller can provide on a deal with a $300,000 sales price and a 75% Loan to value conventional loan?
FHA loan?
USDA loan?
VA loan?
Conventional - $27,000
FHA - $18,000
USDA - $18,000
VA - $12,000
True or False
On all loan types, there may be extenuating circumstances that if demonstrated properly by the buyer, may reduce the seasoning time required to get another mortgage. Divorce is one of those extenuating circumstances.
False
Divorce does not count - neither does inability to sell an exit home following a relocation.
In order to exclude a debt from the debt-to-income calculations, how many months of bank statements does DHI need to confirm the debt is paid by someone else?
12
True or False
When turning an exit home into an investment property in order to purchase a new primary with us and we need rent to qualify, it is acceptable to rent out the exit home to a relative.
False
What percentage of all credit reports contain errors?
25% of all credit reports have some type of error.
True or False
On an investment property purchase with a sales price of $400,000, the seller can provide $10,000 in closing cost assistance.
False - Investment property IPC are limted to 2% of the sales price.
True or False
When attempting to qualify for a VA loan, short sales are not considered a negative event. However, Deed in Lieu of Foreclosure follows the same waiting period as a foreclosure.
True
True or False
It is perfectly acceptable and within Fannie/Freddie guidelines to own multiple second homes.
True
As long as those second homes make sense - mountains and beach - including distance from one another.
True or False
DHI loan officers make great partners
True - but you may not want them living in your primary, secondary or investment property.