The Process
A letter from a bank or mortgage lender for a borrower showing loan qualification
Pre-approval
This type of coverage is required when a borrower is making a down payment of less than 20% for a conventional loan
PMI-Private Mortgage Insurance
The minimum down payment for FHA mortgage
3.5%
Minimum down payment for a conventional loan
3% FTHB or 5%
Minimum down payment
0%
This standardized 3 pg document contains details about a mortgage & is provided at application
Loan Estimate
This analysis is done once a year to review insurance and property tax activity from the past 12 months & project the next 12 months
Escrow Analysis
The minimum credit score for an FHA mortgage
580
Minimum credit score for a conventional loan
620
Minimum credit score for VA
580
A profession judgement of a property's worth
Appraised Value
The process of using a new loan to payoff your current one to lower the interest rate or take out the equity
Refinance
The maximum seller concession allowed on an FHA mortgage
6%
What is the max allowable % of seller paid costs for a conventional loan
3% if LTV > 90%
6% if LTV < 90%
9% if LTV < 75%
PMI Percentage on VA Loans
No PMI
During this process, the bank/lender gathers documents to assess the risk of lending to a borrower
Underwriting
The process of paying off a loan in installment payments over a period of time
Amortization
What is the current FHA "UFMIP" rate
1.75%
What is the max loan limit for conventional loans?
$806,500
The maximum allowable % of seller paid costs on a VA Loan
4%
This ratio divides a borrower's total housing expenses by their monthly income, and should be 28% or less
Housing Ratio
The manner in which the title is held, and refers to your legal rights to the home you own
Vesting
What is the max loan limit for FHA?
$524,255
What is the current PMI rate for conventional loans?
Trick ??
Varies--based on credit, down payment, and other factors
Average time needed to close a VA loan
30 days