HUD Exam Prep actual questions and correct answers

HUD Exam Prep actual questions and correct answers Conventional Loan Front end 28% Back end 36% can go up to 45% to 50%(debt to income), backed by private lenders. AKA prime loans. Good credit, 20% down payment. May have interest only terms FHA Front end 31% Back end 43% Limited funds, bad credit, bankruptcy, high debt to income ratio. EEM (Energy) FHA Front end 33% Back end 45% VA 41% USDA Front End 29% Back End 41%, low-to-moderate income, must live rural area, no down payment, competitive rates. Bellow 115% median income. Loan term 33 to 38 yrs Equal Credit Opportunity Act (ECOA) A federal act, which prohibits discrimination by lenders on the basis of sex or marital status in any aspect of a credit transaction. Front end Ratio PITIA/ Gross Income Within three days of receiving a loan application, lenders are required to supply the client with Loan Estimate How may years at a job to show employment stability? At least 2 years Which factor determines whether the client will have to pay private mortgage insurance versus mortgage insurance premium Type of loan The Fair Housing Act The federal law that prohibits discrimination in housing based on race, color, religion, sex, handicap, familial status, and national origin The Housing and Urban Development Act providing government-insured loans to moderate-income people. The Dodd-Frank Act protects borrowers from predatory lending practices Affirmatively Furthering Fair Housing (AFFH) Advocating for lenders to operate in underserved areas After how many days can foreclosure proceedings begin if the client is not being evaluated for loss mitigation, and has missed payments on an FHA loan