Payments
What is the minimum percent required as a downpayment for a First Time Homebuyers for Conventional and FHA?
3% on a Conventional loan and 3.5% FHA
What are the types of Mortgage loans?
Conventional, FHA, USDA, and VA
True or False: You can buy an investment property using a VA loan
True, as long as its an attached multi-unit property and you will be occupying one as your primary residence
What does NMLS stand for?
National Mortgage Licensing System
What is the minimum credit score we require?
620 is the minimum Fortera requires.
Escrow is money collected as part of the monthly payments that is set aside to pay _______ and _______?
Taxes and Insurance
True or False: We can do Contruction Loans in any state
False, we can only do Construction loans in TN and KY
What is the maximum allowable units to be purchased to maintain the status of residential before it becomes commercial?
Up to four units
What years was the Safe Act passed?
2008
What is the maximum DTI ratio a member can have for a Conventional Loan?
50%
How many days do you have to make your mortgage payment before it is considered late and what percentage do they charge when it is late?
The member gets a 15 day grace period, after the 15 days 5% will be the late fee
What type of loans are only to be used to purchase primary residence only?
All the loans that end in the letter A. This includes VA, FHA, and USDA.
What is the minimum downpayment for one dwelling investment property using a Conventional Loan?
15%
What is required on Conventional loans with less than 20% downpayment and on FHA loans for the life of the loan?
PMI-(Private Mortgage Insurance)
True or False: A borrower can not have more than one active VA loan
False, as long as the new property is an improvement for your family lifestyle and if you have been stationed to a different Duty Station
What does P.I.T.I stand for?
Principal, Interest, Taxes, and Insurance
What is the term for Construction Loan?
12 Months
How many months of reserve are required for a borrow to keep an approval status on an investment property?
6 Months
What type of loan was created in 1944 through the GI Bill of Rights.
VA
What is the maximum seller concession allowable for a 97% LTV Conventional Loan?
3%
What is the only thing that can make your payments change every year?
Escrow analysis, that is calculated at the end of the year
What is considered a Jumbo loan?
A Jumbo loan is anything over $726,200 for one unit
What is considered an Investment property?
A property that you own but not occupied by the borrower
What was implemented to ensure that financial institutions and firms that deal with credit extension make credit equally available to all credit worthy customers?
Regulation B/ECOA
**Equal Credit Opportunity Act**
What is the minimum timeframe a member has to wait after a Chapter 13 or Chapter 7 Bankruptcy to apply for a mortgage?
-Chapter 7 you can get a FHA loan application after 2 years and 4 years for Conventional
-Chapter 13 you can get an FHA, USDA, VA after 1 year, and 2 years for Conventional