Xinnix Final | 186 Questions| with 100% Correct
Answers
A veteran has the ability to transfer a portion of their entitlement to another veteran. - Correct answer-
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. - Correct answer-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 - Correct answer-No
YTD paystubs will be required from a borrower that is self-employed (Schedule C). - Correct answer-
False
The maximum LTV for an FHA purchase is 97%. - Correct answer-False
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
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. - Correct answer-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). -
Correct answer-No
One month of the borrower's current house payment must be included when calculating the new loan
amount for a cash-out refinance - Correct answer-True
The qualifying rate for a 7/1 ARM is 2% above the start rate. - Correct answer-False
Churning schemes usually involve falsified down payment amounts and falsified appraisals. - Correct
answer-False
A borrower can use a credit card to pay for their required down payment - Correct answer-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%
Answers
A veteran has the ability to transfer a portion of their entitlement to another veteran. - Correct answer-
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. - Correct answer-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 - Correct answer-No
YTD paystubs will be required from a borrower that is self-employed (Schedule C). - Correct answer-
False
The maximum LTV for an FHA purchase is 97%. - Correct answer-False
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
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. - Correct answer-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). -
Correct answer-No
One month of the borrower's current house payment must be included when calculating the new loan
amount for a cash-out refinance - Correct answer-True
The qualifying rate for a 7/1 ARM is 2% above the start rate. - Correct answer-False
Churning schemes usually involve falsified down payment amounts and falsified appraisals. - Correct
answer-False
A borrower can use a credit card to pay for their required down payment - Correct answer-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%
