Xinnix Ground School QUESTIONS WITH COMPLETE 100% VERIFIED SOLUTIONS 2024/2025, Study Guides, Projects, Research of Business Administration

Download Xinnix Ground School QUESTIONS WITH COMPLETE 100% VERIFIED SOLUTIONS 2024/2025 and more Study Guides, Projects, Research Business Administration in PDF only on Docsity! Xinnix Ground School QUESTIONS WITH COMPLETE 100% VERIFIED SOLUTIONS 2024/2025 first-time homebuyer Someone who has never owned a home Move-up homebuyer Currently owns, or has previously owned a home and is looking to move up in price, location, size, etc. Relocation Homebuyer Purchasing a new home in a different city or state due to job transfer or personal desire Affluent homebuyer Well seasoned in home buying process. Knowledgeable, financially savvy, busy. Empty-nester homebuyer Experienced homebuyers looking to downsize due to age and no dependent children. Investor homebuyer Well seasoned and knowledgeable about mortgage process. Rate sensitive, smarter, potentially impatient and time sensitive. Looking to close as quickly as possible. End lender in mortgage banking correspondent lender End lender in mortgage brokering wholesale lender Correspondent lenders purchase closed loans from banks and mortgage bankers. Warehouse line of credit. Wholesale lenders Table fund at closing. All closing docs in name of wholesale lender. Fannie Mae (FNMA) Federal National Mortgage Association Freddie Mac (FHLMC) Federal Home Loan Mortgage Corporation FHA Federal Housing Administration VA Veteran's Administration Non-agency loans Comprise any loans not made by the 4 lending agencies Conforming loans Any agency loan Jumbo loan Any conventional loan that is in excess of the loan limits set by Fannie Mae and Freddie Mac. All jumbo loans are, by definition, nonconforming; the reverse, however, is not true. Conventional A loan NOT insured by FHA or VA Non-conforming Any loan that does NOT conform to Freddie Mac or Fannie Mae guidelines URLA Uniform residential loan application. 1003. Construction loan A short-term, interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses. Construction-permanent loan Same as Construction loan except that long-term financing replaces the interim financing upon home completion. Primary residence (owner-occupied, principal residence) Residence that the owner physically occupies Secondary residence (second home) Property purchased for occupancy but not considered primary residence. Such as a vacation home. Investment property (rental property) Property purchased by borrower with no intention to occupy and is instead used to establish rental income cash flow. Primary residence > Second home > Investment property Risk of default to lender rated lowest to highest based on property purpose. Single Family Detached A dwelling with no shared walls, designed to be used by one household Single Family attached Two or more dwellings sharing a common wall. Townhouses and condos Condominium A separate living unit joined together by like units sharing common walls. Housing ratio ( Front end ratio ) PITI/gross monthly income = Housing (front) ratio Total debt-to-income ratio (Back end ratio) (PITI + monthly debt)/gross monthly income = Total DTI Ratio Conventional qualifying ratios 28/36 FHLMC 36 FNMA (back end only) FHA qualifying ratios 31/43 33/45 (new construction) VA qualifying ratio 41 Back ratio Conventional Income guidelines Salaried employees: Current income as shown on paystubs Commission and bonuses: 2 year avg Part-time, overtime: 2 year avg Social security, child support, alimony: must continue for at least 3 years Conventional Debt guidelines Installment: >10 payments remaining Revolving: All; If no required minimum payment stated, assume 5% of outstanding balance for FNMA loans Legal: Counted if >10 months remaining Daycare: Not counted FHA Income Guidelines Same as conventional guidelines FHA Debt Guidelines Same as conventional Guidelines VA Income guidelines Must prove job stability: If just exiting military, must be working in same line of work. If working in different line of work, must wait 12 months Strict on job/career changes: 12 month wait generally required for changes in past 12-24 months. VA Debt guidelines Same as conventional except that daycare is also included. Property tax calculation Sales price X tax rate% = Annual property taxes Homeowners insurance Calculation Sales price X .3% = Annual H.I. Mortgage Insurance Calculation Loan amount X MI rate = Annual M.I. Cash to close calculation Down payment = Sales price - loan amount or Sales price X % down Closing Costs = Loan amount X % (depends on lender) Prepaids = Sales price x % (typically 1-1.5%) Discount points if any Mortgage insurance, if applicable Subordinate financing The use of a second mortgage to avoid PMI, non-conforming loan pricing, access equity in the home, or lower your monthly payment. CLTV Combined Loan to Value = LTV1 + LTV2 Two types of 2nd Mortgages True Second mortgages: Fixed rate, term, amortization Equity lines of credit: Works like a credit card. Borrower draw from it and then pays it back. Interim Financing bridge or swing loan for short-term financing before a sale