NMLS General Mortgage Knowledge 4

Question 1

What is the current upfront mortgage insurance premium (UFMIP) on most FHA forward mortgages?

Accepted Answer

1.75%

Answer

FHA charges an upfront MIP of 1.75% of the base loan amount.

Question 2

Which borrower is generally exempt from the VA funding fee?

Accepted Answer

Veterans receiving VA compensation for a service-connected disability

Answer

Veterans entitled to disability compensation are exempt from the VA funding fee.

Question 3

The front-end debt-to-income ratio compares gross monthly income to which expense?

Accepted Answer

Housing expense only

Answer

The front-end ratio measures proposed housing expense (PITI plus HOA, etc.) against gross income.

Question 4

What is the minimum borrower age for a HECM reverse mortgage?

Accepted Answer

62

Answer

FHA's HECM program requires at least one borrower aged 62 or older.

Question 5

A home is purchased for $250,000 with a loan of $225,000. What is the LTV?

Accepted Answer

90%

Answer

$225,000 ÷ $250,000 = 90%.

(NMLS) National Mortgage Licensing System Practice Test