CMA Mortgage Products and Programs 2

Question 1

Which loan program allows a borrower to finance both the purchase price and renovation costs into a single mortgage?

Accepted Answer

FHA 203(k) loan

Answer

USDA Rural Development loan

Answer

VA IRRRL

Answer

Conventional 97 loan

Question 2

A borrower wants to refinance their existing VA loan with minimal documentation and no appraisal. Which program applies?

Accepted Answer

VA Interest Rate Reduction Refinance Loan (IRRRL)

Answer

FHA Streamline Refinance

Answer

USDA Streamlined Assist Refinance

Answer

Conventional rate-and-term refinance

Question 3

What distinguishes a 'super conforming' loan from a standard conforming loan?

Accepted Answer

It exceeds the standard loan limit but stays within higher limits for designated high-cost areas

Answer

It has a lower interest rate than standard conforming loans

Answer

It requires a minimum 20% down payment

Answer

It is guaranteed by the federal government

Question 4

Under the USDA Guaranteed Loan Program, what is the maximum debt-to-income ratio typically allowed without a compensating factor?

Accepted Answer

29% front-end / 41% back-end

Answer

28% front-end / 36% back-end

Answer

31% front-end / 43% back-end

Answer

33% front-end / 45% back-end

Question 5

A borrower has a FICO score of 580 and wants the minimum possible down payment on an FHA loan. What is the minimum down payment required?

Accepted Answer

3.5%

Answer

3.0%

Answer

5.0%

Answer

10.0%

Question 6

Which feature of an adjustable-rate mortgage limits how much the interest rate can increase over the life of the loan?

Accepted Answer

Lifetime cap

Answer

Periodic cap

Answer

Payment cap

Answer

Margin cap

Question 7

Which mortgage product is specifically designed for energy-efficient home improvements and allows the cost to be rolled into a conventional mortgage?

Accepted Answer

Fannie Mae HomeStyle Energy

Answer

FHA EEM (Energy Efficient Mortgage)

Answer

VA Energy Improvement Loan

Answer

PACE loan