XINNIX GROUND SCHOOL ACTUAL
TEST QUESTIONS AND CORRECT
ANSWERS BUNDLED STUDY
MATERIAL COMPLETE GUIDE
first-time homebuyer - ANSWERSSomeone who has never owned a home
Move-up homebuyer - ANSWERSCurrently owns, or has previously owned a home and
is looking to move up in price, location, size, etc.
Relocation Homebuyer - ANSWERSPurchasing a new home in a different city or state
due to job transfer or personal desire
Affluent homebuyer - ANSWERSWell seasoned in home buying process.
Knowledgeable, financially savvy, busy.
Empty-nester homebuyer - ANSWERSExperienced homebuyers looking to downsize
due to age and no dependent children.
Investor homebuyer - ANSWERSWell 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 - ANSWERScorrespondent lender
End lender in mortgage brokering - ANSWERSwholesale lender
Correspondent lenders - ANSWERSpurchase closed loans from banks and mortgage
bankers. Warehouse line of credit.
Wholesale lenders - ANSWERSTable fund at closing. All closing docs in name of
wholesale lender.
Fannie Mae (FNMA) - ANSWERSFederal National Mortgage Association
Freddie Mac (FHLMC) - ANSWERSFederal Home Loan Mortgage Corporation
FHA - ANSWERSFederal Housing Administration
, VA - ANSWERSVeteran's Administration
Non-agency loans - ANSWERSComprise any loans not made by the 4 lending agencies
Conforming loans - ANSWERSAny agency loan
Jumbo loan - ANSWERSAny 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 - ANSWERSA loan NOT insured by FHA or VA
Non-conforming - ANSWERSAny loan that does NOT conform to Freddie Mac or
Fannie Mae guidelines
URLA - ANSWERSUniform residential loan application. 1003.
Construction loan - ANSWERSA 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 - ANSWERSSame as Construction loan except that long-
term financing replaces the interim financing upon home completion.
Primary residence (owner-occupied, principal residence) - ANSWERSResidence that
the owner physically occupies
Secondary residence (second home) - ANSWERSProperty purchased for occupancy
but not considered primary residence. Such as a vacation home.
Investment property (rental property) - ANSWERSProperty purchased by borrower with
no intention to occupy and is instead used to establish rental income cash flow.
Primary residence > Second home > Investment property - ANSWERSRisk of default to
lender rated lowest to highest based on property purpose.
Single Family Detached - ANSWERSA dwelling with no shared walls, designed to be
used by one household
Single Family attached - ANSWERSTwo or more dwellings sharing a
common wall. Townhouses and condos
Condominium - ANSWERSA separate living unit joined together by like units sharing
common walls.
TEST QUESTIONS AND CORRECT
ANSWERS BUNDLED STUDY
MATERIAL COMPLETE GUIDE
first-time homebuyer - ANSWERSSomeone who has never owned a home
Move-up homebuyer - ANSWERSCurrently owns, or has previously owned a home and
is looking to move up in price, location, size, etc.
Relocation Homebuyer - ANSWERSPurchasing a new home in a different city or state
due to job transfer or personal desire
Affluent homebuyer - ANSWERSWell seasoned in home buying process.
Knowledgeable, financially savvy, busy.
Empty-nester homebuyer - ANSWERSExperienced homebuyers looking to downsize
due to age and no dependent children.
Investor homebuyer - ANSWERSWell 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 - ANSWERScorrespondent lender
End lender in mortgage brokering - ANSWERSwholesale lender
Correspondent lenders - ANSWERSpurchase closed loans from banks and mortgage
bankers. Warehouse line of credit.
Wholesale lenders - ANSWERSTable fund at closing. All closing docs in name of
wholesale lender.
Fannie Mae (FNMA) - ANSWERSFederal National Mortgage Association
Freddie Mac (FHLMC) - ANSWERSFederal Home Loan Mortgage Corporation
FHA - ANSWERSFederal Housing Administration
, VA - ANSWERSVeteran's Administration
Non-agency loans - ANSWERSComprise any loans not made by the 4 lending agencies
Conforming loans - ANSWERSAny agency loan
Jumbo loan - ANSWERSAny 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 - ANSWERSA loan NOT insured by FHA or VA
Non-conforming - ANSWERSAny loan that does NOT conform to Freddie Mac or
Fannie Mae guidelines
URLA - ANSWERSUniform residential loan application. 1003.
Construction loan - ANSWERSA 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 - ANSWERSSame as Construction loan except that long-
term financing replaces the interim financing upon home completion.
Primary residence (owner-occupied, principal residence) - ANSWERSResidence that
the owner physically occupies
Secondary residence (second home) - ANSWERSProperty purchased for occupancy
but not considered primary residence. Such as a vacation home.
Investment property (rental property) - ANSWERSProperty purchased by borrower with
no intention to occupy and is instead used to establish rental income cash flow.
Primary residence > Second home > Investment property - ANSWERSRisk of default to
lender rated lowest to highest based on property purpose.
Single Family Detached - ANSWERSA dwelling with no shared walls, designed to be
used by one household
Single Family attached - ANSWERSTwo or more dwellings sharing a
common wall. Townhouses and condos
Condominium - ANSWERSA separate living unit joined together by like units sharing
common walls.
