CMP CMP - Certified Mortgage Processor Property Types and Eligibility Questions and Answers

Question 1

Which property classification describes a single-family home that the borrower plans to occupy as their primary residence?

Accepted Answer

Owner-occupied primary residence

Answer

Investment property

Answer

Second home

Answer

Non-owner occupied

Question 2

What is the minimum down payment typically required for a conventional conforming loan on a second home?

Accepted Answer

10%

Answer

3%

Answer

5%

Answer

20%

Question 3

Under Fannie Mae guidelines, what is the maximum number of units allowed for a residential conforming mortgage?

Accepted Answer

4

Answer

2

Answer

6

Answer

10

Question 4

A processor receives a file for a condominium. Which document is required from the HOA to assess project eligibility?

Accepted Answer

HOA meeting minutes, budget, master insurance policy, and condo questionnaire

Answer

Property deed and title commitment only

Answer

Only the homeowner's current insurance declarations page

Answer

A signed letter from the HOA president confirming no litigation

Question 5

What does 'warrantability' mean in the context of a condominium project?

Accepted Answer

Whether the condo project meets Fannie Mae/Freddie Mac guidelines to be eligible for conventional financing

Answer

The structural warranty provided by the developer

Answer

A legal guarantee against HOA fee increases

Answer

The FHA inspection certification for the building

Question 6

A borrower is purchasing a manufactured home that is titled as real property. What must be confirmed about the land?

Accepted Answer

The borrower must own the land or hold a long-term leasehold interest, and the home must be permanently affixed

Answer

The land must be at least 5 acres

Answer

The home must have been built after 2000

Answer

The land must be in a flood zone