Conventional Loan
Front end 28%
Back end 36% can go up to 45% to 50%(debt to income), backed by private lenders. AKA prime loans. Good credit, 20% down
... [Show More] payment. May have interest only terms
FHA
Front end 31%
Back end 43%
Limited funds, bad credit, bankruptcy, high debt to income ratio.
EEM (Energy) FHA
Front end 33%
Back end 45%
VA
41%
USDA
Front End 29%
Back End 41%, low-to-moderate income, must live rural area, no down payment, competitive rates. Bellow 115% median income. Loan term 33 to 38 yrs
Equal Credit Opportunity Act (ECOA)
A federal act, which prohibits discrimination by lenders on the basis of sex or marital status in any aspect of a credit transaction.
Front end Ratio
PITIA/ Gross Income
Within three days of receiving a loan application, lenders are required to supply the client with
Loan Estimate
How may years at a job to show employment stability?
At least 2 years
Which factor determines whether the client will have to pay private mortgage insurance versus mortgage insurance premium
Type of loan
The Fair Housing Act
The federal law that prohibits discrimination in housing based on race, color, religion, sex, handicap, familial status, and national origin
The Housing and Urban Development Act
providing government-insured loans to moderate-income people.
The Dodd-Frank Act
protects borrowers from predatory lending practices
Affirmatively Furthering Fair Housing (AFFH)
Advocating for lenders to operate in underserved areas
After how many days can foreclosure proceedings begin if the client is not being evaluated for loss mitigation, and has missed payments on an FHA loan
120
FHA 203K Loan
allows the homeowner to refinance the home loan to perform repair
Streamlined 203K Loan
minor rehabilitation and/or home improvement projects that will not require the involvement of consultants, engineers, and/or architects
key advantage of the client using a real estate agent versus selling her house on her own
Real estate agents negotiate on behalf of the client.
A means test
bankruptcy qualification that considers income and equity in assets to determine if a client has the ability to repay part of the debt
Default
when a payment has not been made after 60 to 90 days. FHA 30 days
Delinquent
timely mortgage payments by the end of the grace period (14 day)
Which notice must the servicer send the client once the mortgage is delinquent and before 45 days past due?
Housing counseling
advertisement that guarantees a government-approved loan modification must be reported to......
Report the company to the Federal Trade Commission (FTC)
The only mortgage loan product that allows family assistance
FHA - USDA and VA do not require down payment, and conventional loans won't allow family funds
Consumer Finance Protection Bureau CFPB
Easier-to-use mortgage disclosure forms that clearly outline the terms of a mortgage to the borrower
Satisfies efforts to Affirmatively Further Fair Housing
Reviewing marketing materials of local mortgage lenders satisfies efforts to Affirmatively Further Fair Housing
Chapter 7 Bankruptcy
Means test, Liquidation of assets, best for client with no assets
Chapter 13 bankrupcy
retain house/car, Wager earner plan-pay all or part of debts 3-5 yrs, [Show Less]