Mortgage Products and Programs 5

Question 1

Under the VA loan program, which of the following borrowers is exempt from paying the VA funding fee?

Accepted Answer

Veterans receiving VA disability compensation

Answer

First-time homebuyers using VA benefits

Answer

Active-duty service members on their second VA loan

Answer

National Guard members who served fewer than 6 years

Question 2

The maximum loan limit for an FHA-insured single-family loan in high-cost areas is set at what percentage of the FHFA conforming loan limit?

Accepted Answer

150%

Answer

100%

Answer

115%

Answer

175%

Question 3

A 'teaser rate' on an ARM is best described as:

Accepted Answer

A temporarily discounted initial rate below the fully indexed rate

Answer

The rate applied after the first adjustment period

Answer

The index rate plus the margin

Answer

The lifetime cap applied at origination

Question 4

Which specialized loan program is backed by the Small Business Administration and can be used to purchase commercial real estate for an owner-operated business?

Accepted Answer

SBA 504 Loan

Answer

FHA 221(d)(4)

Answer

USDA Business Program

Answer

HUD Section 8 Financing

Question 5

Down Payment Assistance (DPA) programs are most commonly administered by:

Accepted Answer

State and local Housing Finance Agencies (HFAs)

Answer

Private mortgage insurance companies

Answer

The Federal Reserve

Answer

The CFPB

Question 6

A non-qualified mortgage (Non-QM) loan differs from a qualified mortgage primarily because it:

Accepted Answer

Does not meet the CFPB's Ability-to-Repay rule safe harbor requirements

Answer

Does not conform to FHFA loan limits

Answer

Requires no appraisal at origination

Answer

Is only available to borrowers with credit scores above 740

Question 7

Which HECM (Home Equity Conversion Mortgage) disbursement option provides the borrower with a guaranteed monthly payment for as long as they live in the home?

Accepted Answer

Tenure payment plan

Answer

Term payment plan

Answer

Line of credit

Answer

Modified term