Xinnix Ground Course Final Questions
and Answers Rated A
A veteran has the ability to transfer a portion of their entitlement to another veteran. ✔✔False
1. Gross rent may be considered effective income when an applicant is planning to rent their
current residence after closing on the purchase of their new home. ✔✔False
Based on the following scenario, does the borrower qualify within FNMA guidelines?
PITI: $1,725 monthly
Income: $7,000
Debt: $700 car payment, $375 student loan ($2,250 balance), $170 credit card payments ($1,530
balance ✔✔No
YTD paystubs will be required from a borrower that is self-employed (Schedule C). ✔✔False
The maximum LTV for an FHA purchase is 97%. ✔✔False
,If your borrower is being relocated and needs to close in 30-days, and their spouse will not be
moving for 3 months, the spouse's income can still be used to qualify. ✔✔False
Based on the following scenario, does the borrower qualify within the FHLMC guidelines?
PITI: $1,375 monthly
Income: $4,950 monthly
Debt: $350 car payment, $420 student loan ($4,500 balance), $75 credit card payments ($850
balance). ✔✔No
One month of the borrower's current house payment must be included when calculating the new
loan amount for a cash-out refinance ✔✔True
The qualifying rate for a 7/1 ARM is 2% above the start rate. ✔✔False
Churning schemes usually involve falsified down payment amounts and falsified appraisals.
✔✔False
A borrower can use a credit card to pay for their required down payment ✔✔False
, A borrower's income is a factor considered when determining the principal limit (maximum loan
amount) for a reverse mortgage. ✔✔False
A 30-year conventional loan with an 87% LTV would require 25% mortgage insurance
coverage. ✔✔True
A borrower that is self-employed (Schedule C) will typically not be required to provide a YTD
paystub. ✔✔True
Loans with an LTV >80% will typically require mortgage insurance. (FNMA/FHLMC) ✔✔True
A fixed-rate second mortgage has the loan amount fully disbursed at closing. Monthly payments
are amortized over the term of the loan. Once the balance is paid off the mortgage is closed.
✔✔True
A borrower must qualify at the note rate on a temporary buydown, not the start rate. ✔✔True
and Answers Rated A
A veteran has the ability to transfer a portion of their entitlement to another veteran. ✔✔False
1. Gross rent may be considered effective income when an applicant is planning to rent their
current residence after closing on the purchase of their new home. ✔✔False
Based on the following scenario, does the borrower qualify within FNMA guidelines?
PITI: $1,725 monthly
Income: $7,000
Debt: $700 car payment, $375 student loan ($2,250 balance), $170 credit card payments ($1,530
balance ✔✔No
YTD paystubs will be required from a borrower that is self-employed (Schedule C). ✔✔False
The maximum LTV for an FHA purchase is 97%. ✔✔False
,If your borrower is being relocated and needs to close in 30-days, and their spouse will not be
moving for 3 months, the spouse's income can still be used to qualify. ✔✔False
Based on the following scenario, does the borrower qualify within the FHLMC guidelines?
PITI: $1,375 monthly
Income: $4,950 monthly
Debt: $350 car payment, $420 student loan ($4,500 balance), $75 credit card payments ($850
balance). ✔✔No
One month of the borrower's current house payment must be included when calculating the new
loan amount for a cash-out refinance ✔✔True
The qualifying rate for a 7/1 ARM is 2% above the start rate. ✔✔False
Churning schemes usually involve falsified down payment amounts and falsified appraisals.
✔✔False
A borrower can use a credit card to pay for their required down payment ✔✔False
, A borrower's income is a factor considered when determining the principal limit (maximum loan
amount) for a reverse mortgage. ✔✔False
A 30-year conventional loan with an 87% LTV would require 25% mortgage insurance
coverage. ✔✔True
A borrower that is self-employed (Schedule C) will typically not be required to provide a YTD
paystub. ✔✔True
Loans with an LTV >80% will typically require mortgage insurance. (FNMA/FHLMC) ✔✔True
A fixed-rate second mortgage has the loan amount fully disbursed at closing. Monthly payments
are amortized over the term of the loan. Once the balance is paid off the mortgage is closed.
✔✔True
A borrower must qualify at the note rate on a temporary buydown, not the start rate. ✔✔True
