Acronyms
D.T.I.
What is Debt to Income
The type of loan that only requires a 3.5% down payment. Excellent for first time buyers
What is an FHA loan
The typical down payment required for various investment property purchases
What is 20%
Although there are scenarios where down payments could be lower or higher.
The amount of down payment required for a VA loan?
The minimum credit score necessary for a Conventional Loan
What is 620
P.M.I
What is Private Mortgage Insurance
The minimum number of days a borrower has to review their Closing Disclosure before closing?
What is 3
This type of loan is designed for real estate investors looking to renovate a property and sell it quickly.
What is a fix and flip loan
The term for the fee that veterans may be required to pay when securing a VA loan, which helps cover the costs of the program for future borrowers
What is the VA Funding Fee
The credit report is only valid for this long before it has to be pulled again
What is 120 days
L.T.V.
What is Loan To Value
The three major credit bureaus that provide credit scores to mortgage lenders.
What are Transunion, Equifax and Experian
The type of investment loan that uses the fair market rent to service the mortgage for approval purposes
What is a DSCR Debt Service Coverage Ratio Loan
The minimum service period requirement for peacetime veterans to qualify for a VA loan
What is 181 days.
**90 days during wartime
The minimum down payment required on a conventional loan if you have had home ownership within the past 3 years
What is 5%
A.R.M.
What is an Adjustable-rate Mortgage
This term refers to the difference between the market value of a property and the outstanding mortgage balance.
What is Equity!
The amount of money an investor can expect to make each month from the rental property AFTER deducting expenses
What is Cash Flow
Before applying for a VA loan, this document is necessary to confirm the borrower's eligibility for the loan program
What is a Certificate of Eligibility (COE)
An account set up by a mortgage lender to hold funds collected for property taxes and homeowner's insurance.
What is an Escrow Account
A.U.S.
What is Automatic Underwriting System
Name at least 2 of the 3 Mortgage Government Sponsored Enterprises (GSE's) that make rules and guidelines for mortgage lending?
What are:
FNMA - Fannie Mae
FHLMC - Freddie Mac
GNMA - Ginny Mae
Investors often use this type of loan, which allows them to borrow against the equity in a property to make improvements or acquire new investements
What is a HELOC
What is 4%
Who is the best overall Mortgage Company in the local area?
What is Evolution Home Mortgage