General Mortgage Knowledge 2025
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Terms in this set (93)
➢ NOT obtained through the FHA,
VA, or USDA
• Fannie Mae and Freddie Mac
Conventional
purchase mortgages that meet these
Mortgages
limits, thereby creating additional
funds lenders can use to make new
mortgages
, • Conforms to loan limits, down
payment requirements, borrower
income requirements, debt-to-income
ratios, and other underwriting
guidelines established by Fannie and
Freddie
• Loan Limits:
• Base = $417,000
• High-Cost Areas = $625,500
• Income Qualifications
• Standard income documentation for
salaried and hourly individuals
typically includes paystubs for the
most recent 30-day period and W-2s
for the most recent 2 year period
• Individuals earning more than 25% of
their income in commission must
provide up to 2 years' tax returns
• Individuals who own more than 25%
Conforming
of a business are required to provide
Loans
up to 2 years' tax returns
• Individuals who earn non-taxed
income (Social Security, public
assistance, or disability) must provide
comprehensive documentation
relevant to the type of income
➢ Permitted to "gross up" those
, earnings by 25%
• Multiply the income by 125%
• Credit Qualifications
• Minimum credit score of 620-700
• Seller Concessions
• Permit borrowers to obtain seller
concessions
➢ Limited to 6%for borrowers who
make a down payment of 10% or more
➢ Limited to 3% for borrowers who
make a down payment of less than
10%
• Exceeds current maximum loan limits
and underwriting requirements
established by Fannie and Freddie
• Examples:
- Jumbo loans
Non conforming - Alt- A
Mortgages - Subprime Loans
- Nontraditional mortgages
- Niche Loans
- Super Conforming Loans
- Option Arms
- Hybrid Arms
Exceed loan limits established by
Jumbo Loans
Fannie and Freddie (417,000)
, • Alternate A Paper
• For those who are Self Employed
• Designation for loans made to
borrowers who do not represent the
Alt- A loans
greatest credit risk of subprime but
who still do not quite meet the
underwriting requirements for
conforming prime rate loans
• Higher interest loans made to
borrowers with blemished credit or
other qualification issues that do not
Subprime Loans conform with Fannie and Freddie
underwriting requirements
• High interest rate and dangerous
terms
Loans for borrowers with unique
Niche Loans
circumstances or needs
Nontraditional Any mortgage product other than a
Mortgages 30 year fixed rate mortgage
Super Used in certain high-cost areas and
Conforming may be made for amounts up to
Loans $729,750
Update|Complete Exam Set
Questions And Verified Answers |
Get It 100% Accurate!!| Already
Passed A+
Save
Terms in this set (93)
➢ NOT obtained through the FHA,
VA, or USDA
• Fannie Mae and Freddie Mac
Conventional
purchase mortgages that meet these
Mortgages
limits, thereby creating additional
funds lenders can use to make new
mortgages
, • Conforms to loan limits, down
payment requirements, borrower
income requirements, debt-to-income
ratios, and other underwriting
guidelines established by Fannie and
Freddie
• Loan Limits:
• Base = $417,000
• High-Cost Areas = $625,500
• Income Qualifications
• Standard income documentation for
salaried and hourly individuals
typically includes paystubs for the
most recent 30-day period and W-2s
for the most recent 2 year period
• Individuals earning more than 25% of
their income in commission must
provide up to 2 years' tax returns
• Individuals who own more than 25%
Conforming
of a business are required to provide
Loans
up to 2 years' tax returns
• Individuals who earn non-taxed
income (Social Security, public
assistance, or disability) must provide
comprehensive documentation
relevant to the type of income
➢ Permitted to "gross up" those
, earnings by 25%
• Multiply the income by 125%
• Credit Qualifications
• Minimum credit score of 620-700
• Seller Concessions
• Permit borrowers to obtain seller
concessions
➢ Limited to 6%for borrowers who
make a down payment of 10% or more
➢ Limited to 3% for borrowers who
make a down payment of less than
10%
• Exceeds current maximum loan limits
and underwriting requirements
established by Fannie and Freddie
• Examples:
- Jumbo loans
Non conforming - Alt- A
Mortgages - Subprime Loans
- Nontraditional mortgages
- Niche Loans
- Super Conforming Loans
- Option Arms
- Hybrid Arms
Exceed loan limits established by
Jumbo Loans
Fannie and Freddie (417,000)
, • Alternate A Paper
• For those who are Self Employed
• Designation for loans made to
borrowers who do not represent the
Alt- A loans
greatest credit risk of subprime but
who still do not quite meet the
underwriting requirements for
conforming prime rate loans
• Higher interest loans made to
borrowers with blemished credit or
other qualification issues that do not
Subprime Loans conform with Fannie and Freddie
underwriting requirements
• High interest rate and dangerous
terms
Loans for borrowers with unique
Niche Loans
circumstances or needs
Nontraditional Any mortgage product other than a
Mortgages 30 year fixed rate mortgage
Super Used in certain high-cost areas and
Conforming may be made for amounts up to
Loans $729,750
