Practice Test Geeks(CMA) Certified Mortgage Advisor Practice Test
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Mortgage Products and Programs Flashcards

7 cards from real CMA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Mortgage Products and Programs flashcards as text

  1. Which loan program provides 100% financing for eligible rural and suburban homebuyers and is backed by the U.S. Department of Agriculture?

    Answer: USDA Section 502 Guaranteed Loan

    The USDA Section 502 Guaranteed Loan Program offers 100% financing for eligible borrowers in rural and some suburban areas.

  2. What is the annual MIP rate for an FHA 30-year loan with a loan amount above $150,000 and LTV greater than 95%?

    Answer: 0.80%

    FHA charges 0.80% annual MIP for 30-year loans over $150,000 when the LTV exceeds 95%, effective from 2023 rate reductions.

  3. A piggyback loan (80/10/10) is primarily used to:

    Answer: Avoid paying private mortgage insurance on a conventional loan

    An 80/10/10 piggyback keeps the first mortgage at 80% LTV (avoiding PMI) while a second mortgage covers another 10%, and 10% is the buyer's down payment.

  4. Which Fannie Mae product is designed specifically to help existing homeowners buy a new home before selling their current one, using projected equity from the departing residence?

    Answer: Delayed Financing exception

    Fannie Mae's Delayed Financing exception allows borrowers who paid cash for a property to recoup their funds immediately via a cash-out refinance.

  5. An interest-only mortgage during the IO period results in which of the following?

    Answer: The principal balance remains unchanged

    During the interest-only period, payments cover only interest charges, so the principal balance does not decrease.

  6. A veteran using a VA loan for the second time who did not pay off their first VA loan in full would face which consequence?

    Answer: They pay a higher VA funding fee and may have reduced entitlement

    Veterans with remaining VA loan balances can use remaining entitlement but typically pay a higher funding fee for subsequent use.

  7. Which of the following best describes a 'portfolio loan'?

    Answer: A loan retained by the lender on its own books rather than sold on the secondary market

    Portfolio loans are held by the originating lender on its balance sheet rather than being sold to the secondary market, allowing non-standard underwriting.