Government programs
No product only available for active or former military personnel.
VA loan
The minimum down payment on a FHA loan is?
3.5%
In calculating income for self-employed borrowers, mortgage companies use gross or net income for qualifying?
Net income. You gotta pay your taxes.
Roughly, what is the amount needed to put down on a investment property?
Most of the time 10%. But in order to get favorable terms, most likely need to go to 25%.
People without a job or income can buy a home. True or false?
False. If you said true, I need you to stay after class for detention.
Loan program that has a form of mortgage insurance, but it never goes away, no matter what the LTV is.
FHA loan
The minimum down payment on a conventional loan is?
3%. But this can only be for borrowers that meet certain guidelines.
Potential client says they have 500,000 available as assets. They are all in bitcoin, for a mortgage company. Can they consider that asset?
No. Mortgage guidelines were all made by boomers.. at least that’s what the kids say.
A client buys a home, lives in it for three months, then purchase a new one. The new home is then their primary residence. They rent out the previous residence for rental income. They do this multiple times in a few short years. They go to purchase a new primary residence, but the home is smaller and located near their current residence. Would the lending company be concerned about occupancy fraud?
Yes. I pretty much gave you the answer in the question.
I have no money to put down, but I wanna buy a rental property. Is this likely?
NO… please don’t send these people my way
Maximum DTI can go up to 56.9%. But does not have 100% financing.
FHA loan
The sales price of a property is 950,000. The borrower wants to use an FHA loan how much do they need to put down in order to do so?
A little bit more than 20%. The max loan amount for an FHA loan is 757, 850.
A client is interested in a condo. You know they are using a government loan product such as VA or FHA. The condo is attached to commercial property. This could be restaurants, shopping centers, or even hotels. Should you show this property to them?
NO. Unless the borrower has plenty of funds to put down. Most of the time these type of condos are not approved. They might not even be conventionally approved. This is cause they would not be warrantable. A lot of of risk.
DSCR loans are a type of what?
Is a type of loan for a rental investment property. These type of loans allow the potential borrower to use rental income from the new home for qualifying.
I want my mortgage payment to be under 2000 a month. Can I go see the $750,000 home?
Only if you’re putting down 700,000
Loan product designated for areas in the middle of nowhere. Something you will probably never do.
USDA loan
Military borrower is using their VA loan for the first time. They are active military what is their minimum down payment? And what is added to the overall loan balance.
They can technically finance 100% but if they are active military, they also have to include their funding fee. The funding fee is the VA version of mortgage insurance, except it is rounded into the total loan. The more they put down the less the funding fee is. If they at all have disability with the VA the funding fee is voided.
Mother is trying to buy a property with a first time homebuyer loan. They don’t have much income, but their child is willing to cosign for them. The cosigner will not be a residence of this property. Is it likely that they can use a first time home by a program?
NO! For the most part first home by programs can only be used by primary residence of the subject property.
A military borrower has to move away because they’ve been stationed elsewhere. Do they have to refinance their existing home in order to rent it out? They want to use their VA loan to purchase their new home at their new station location.
as long as they have entitlement they can potentially have two VA loans at one time they do not have to refinance the previous in order to rent it.
I was told I qualify up to a $1500 a month mortgage payment. Can I go look at this $200,000 condo with $700 a month condo fees?
Block my number if you said yes.
The only loan product that you must consider childcare payments such as daycare, nannies, and others, as monthly debts. These are counted in the DTI ratio.
VA loan
This might be easy or maybe not. On a conventional loan can the down payment be gift funds given to the borrower?
Yes
Felicia has three kids, she gets child support twice monthly. Most of the time she gets it on the second and 18th of the month. Sometimes it comes in a week or two late. Can we use this income?
NO! Child support can only be used if it is on time and consistent. You must continue for the least next three years and not be late for the last three months.
A type of loan that does not use traditional income documents. Income is calculated by monthly flow of capital.
Bank statement loans
Who is the best loan officer in the state of Virginia?
…….. I hope you all got the answer right.