Xinnix Final Exam Questions With Answers
On an FHA loan the upfront MIP should be included when calculating cash-to-close.
False
The borrower must have 5% of their own funds when putting 15% down on a primary residence.
(FNMA)
False
A 3-Year ARM adjusts every 3 years
True
A Loan Officer can locate the summary of the eligibility requirements for a loan to be sold to a specific
lender/investor in the lender specs.
False
A HELOC loan has an interest only payment
True
A borrower paid semi-monthly and a borrower paid bi-weekly have the same number of pay periods
per year
False
FHA Case Numbers are tied to the property, not the borrower.
True
Judgments and tax liens are required to be paid off at or prior to loan closing. (FNMA/FHLMC)
True
Unreimbursed business expenses can be located on Form 2106 of a borrower's personal tax return.
True
HOA dues are included in the PITI calculation
False
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.
VA sets their own maximum loan limits.
False
The monthly MI for an FHA loan is calculated by BASE Loan Amount x .85% /12
True
, Redisclosure of the Truth in Lending is required if the PAR changes more than _____% on a fixed rate
loan?
.125
If a veteran has previously used their VA entitlement and it has not yet been restored, their COE may
show an available amount which is less that the VA maximum allowable entitlement
True
A room addition is allowed under the FHA 203(k) Limited program.
False
The maximum allowable ratios for an owner-occupant when using a non-occupant co-borrower per
FHLMC guidelines is ______________.
35/43
A borrower is considering a 1-year ARM with a note rate of 4.25%, 2/6 caps and a margin of 2.5%.
What would the borrower's interest rate be for year 2 if the index is at 4.25%?
6.25%
The builder must provide an appraisal certificate to the mortgage company on an FHA new
construction loan prior to closing.
False
All of the following documents must be provided by the builder to the mortgage company on an FHA
new construction loan prior to the loan being cleared to close EXCEPT:
Appraisal Certificate
MUST BE PROVIDED: Certificate of Occupancy, Builder's 1-Year Warranty, Insulation Certificate
After the borrower submits a complete loan application, the LE must be delivered or placed in the
mail within how many days?
3 business days
Which document is not necessary for the builder provide to the mortgage company on an FHA new
construction loan prior to the loan being cleared to close?
Appraisal Certificate
Ms. Armstrong is paid an hourly wage of $17.50. She receives time and a half for overtime (more than
40 hours per week) and has been averaging 50 hours every week, since starting with the company five
years ago. Her current paystub from 7/15 of this year shows a YTD gross income of $26,260. Her W2
from last year shows $48,048 and the year before shows $46,116.
What is the monthly base income and monthly overtime income that would be entered on the 1003?
(Overtime not guaranteed)
$3033/$915
On an FHA loan the upfront MIP should be included when calculating cash-to-close.
False
The borrower must have 5% of their own funds when putting 15% down on a primary residence.
(FNMA)
False
A 3-Year ARM adjusts every 3 years
True
A Loan Officer can locate the summary of the eligibility requirements for a loan to be sold to a specific
lender/investor in the lender specs.
False
A HELOC loan has an interest only payment
True
A borrower paid semi-monthly and a borrower paid bi-weekly have the same number of pay periods
per year
False
FHA Case Numbers are tied to the property, not the borrower.
True
Judgments and tax liens are required to be paid off at or prior to loan closing. (FNMA/FHLMC)
True
Unreimbursed business expenses can be located on Form 2106 of a borrower's personal tax return.
True
HOA dues are included in the PITI calculation
False
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.
VA sets their own maximum loan limits.
False
The monthly MI for an FHA loan is calculated by BASE Loan Amount x .85% /12
True
, Redisclosure of the Truth in Lending is required if the PAR changes more than _____% on a fixed rate
loan?
.125
If a veteran has previously used their VA entitlement and it has not yet been restored, their COE may
show an available amount which is less that the VA maximum allowable entitlement
True
A room addition is allowed under the FHA 203(k) Limited program.
False
The maximum allowable ratios for an owner-occupant when using a non-occupant co-borrower per
FHLMC guidelines is ______________.
35/43
A borrower is considering a 1-year ARM with a note rate of 4.25%, 2/6 caps and a margin of 2.5%.
What would the borrower's interest rate be for year 2 if the index is at 4.25%?
6.25%
The builder must provide an appraisal certificate to the mortgage company on an FHA new
construction loan prior to closing.
False
All of the following documents must be provided by the builder to the mortgage company on an FHA
new construction loan prior to the loan being cleared to close EXCEPT:
Appraisal Certificate
MUST BE PROVIDED: Certificate of Occupancy, Builder's 1-Year Warranty, Insulation Certificate
After the borrower submits a complete loan application, the LE must be delivered or placed in the
mail within how many days?
3 business days
Which document is not necessary for the builder provide to the mortgage company on an FHA new
construction loan prior to the loan being cleared to close?
Appraisal Certificate
Ms. Armstrong is paid an hourly wage of $17.50. She receives time and a half for overtime (more than
40 hours per week) and has been averaging 50 hours every week, since starting with the company five
years ago. Her current paystub from 7/15 of this year shows a YTD gross income of $26,260. Her W2
from last year shows $48,048 and the year before shows $46,116.
What is the monthly base income and monthly overtime income that would be entered on the 1003?
(Overtime not guaranteed)
$3033/$915
