Xinnix Ground School Exam Questions With
Answers
Flipping is a scheme where several people each purchase a property within the neighborhood and
then sell the properties to one another, inflating the price of the home with each sale.
False
YTD paystubs will be requires from a borrower that is self-employed (schedule C)
False
A borrower requesting a jumbo loan will qualify for an agency loan
False
Trailing spouse income can be used for qualifying purposes.
False
The following are types of renovation mortgages
FNMA Homestyle and FHA 203(K)
The maximum LTV for a 1-unit investment property is 95%
False
A simultaneous second mortgage is obtained at the same time as a first mortgage.
True
The builder must provide an appraisal certificate to the mortgage company on a FHA new
construction loan prior to closing.
False
HOA dues are included in the PITI calculation
False
A room addition is allowed under the FHA 203(K) limited programs.
False
Loans with an LTV higher than 80% generally require mortgage insurance.
True
Tenancy in Common is not an acceptable manner in which title may be held.
False
FHA guidelines require 3 years to have passed since a foreclosure, deed in lieu, or short sale before a
borrower may apply for an FHA loan
True
, If a borrower qualifies for an agency loan of $295,750, FHA is a viable loan option.
True
A borrower's brother would like to give her money to help towards the down payment of her new
house. This would be considered______
A gift from a relative and would require a gift letter, as well as proof that the funds have been
transferred to the borrower's account.
Depreciation should be added to a borrower's income who owns several investment properties.
True
Unless a borrower can document extenuating circumstances, they must wait at least 7 years from a
Chapter 7 bankruptcy or foreclosure to apply for conventional financing
False
A HUD Consultant would not be required for an FHA 203(k) standard program
False
A partner's percentage of ownership and earnings can be located on Schedule E part 2 of their
personal tax returns
False
VA sets their own maximum loan limits.
False
The maximum allowable ratios for an owner-occupant when using a non-occupant co-borrower per
FHLMC guidlines is ________.
35/43
Reimbursed business expenses are ________________ ___________ the borrowers gross income.
Added to
Unreimbursed business expenses ___________ the borrower's income
are subtracted from
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
Income or losses derived from partnerships can be located on Schedule K-1 of a borrower's personal
tax return.
False
Answers
Flipping is a scheme where several people each purchase a property within the neighborhood and
then sell the properties to one another, inflating the price of the home with each sale.
False
YTD paystubs will be requires from a borrower that is self-employed (schedule C)
False
A borrower requesting a jumbo loan will qualify for an agency loan
False
Trailing spouse income can be used for qualifying purposes.
False
The following are types of renovation mortgages
FNMA Homestyle and FHA 203(K)
The maximum LTV for a 1-unit investment property is 95%
False
A simultaneous second mortgage is obtained at the same time as a first mortgage.
True
The builder must provide an appraisal certificate to the mortgage company on a FHA new
construction loan prior to closing.
False
HOA dues are included in the PITI calculation
False
A room addition is allowed under the FHA 203(K) limited programs.
False
Loans with an LTV higher than 80% generally require mortgage insurance.
True
Tenancy in Common is not an acceptable manner in which title may be held.
False
FHA guidelines require 3 years to have passed since a foreclosure, deed in lieu, or short sale before a
borrower may apply for an FHA loan
True
, If a borrower qualifies for an agency loan of $295,750, FHA is a viable loan option.
True
A borrower's brother would like to give her money to help towards the down payment of her new
house. This would be considered______
A gift from a relative and would require a gift letter, as well as proof that the funds have been
transferred to the borrower's account.
Depreciation should be added to a borrower's income who owns several investment properties.
True
Unless a borrower can document extenuating circumstances, they must wait at least 7 years from a
Chapter 7 bankruptcy or foreclosure to apply for conventional financing
False
A HUD Consultant would not be required for an FHA 203(k) standard program
False
A partner's percentage of ownership and earnings can be located on Schedule E part 2 of their
personal tax returns
False
VA sets their own maximum loan limits.
False
The maximum allowable ratios for an owner-occupant when using a non-occupant co-borrower per
FHLMC guidlines is ________.
35/43
Reimbursed business expenses are ________________ ___________ the borrowers gross income.
Added to
Unreimbursed business expenses ___________ the borrower's income
are subtracted from
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
Income or losses derived from partnerships can be located on Schedule K-1 of a borrower's personal
tax return.
False
