REAL 4000 UGA ACTUAL QUESTIONS AND

REAL 4000 UGA (ACTUAL / ) QUESTIONS AND

VERIFIED ANSWERS

What is the size limit f a conforming loan?

647,200

Any loan that does not meet the Fannie Mae/Freddie Mac loan requirements.nonconforming loan

nonconforming in size Jumbo (nonconforming) Loans

not having credit to conform Subprime (Non-Conforming) Loan

Private Mortgage Insurance (PMI) purchased by borrower protects lender against losses due to default Required for loans over 80% LTV anything under 20% downpayment 1 / 3

A type of insurance used to protect lenders if a borrower puts less than 20% down on a home purchase.Private Mortgage Insurance (PMI)

An agency established by the Federal Housing Act of 1934 that refinanced home mortgages for mortgage holders facing possible foreclosure.Federal Housing Administration

subprime borrowers may look at FHA loans FHA strictly a loan insurance program (not a secondary market buyer) loan covers up front MIP but not closing cost after foreclosure title transferred to housing and urban development

VA loans

• no downpayment limited to veterans
• can be up to 100% of value
• loan covers funding fee but not closing cost
• / 3

mortgage given by a property buyer simultaneous with receipt of title Purchase Money Mortgage

try to avoid PMI by taking two mortgages and the second mortgage is paired with an underlying 1st mortgage to keep 1st below 80% LTV Piggyback Loan

converts home equity to income without requiring borrower to move

No payment to lender but from lender ex. reg annuity and lump sum

Give up right of disposition or gave limited rights to it Reverse Mortgage

Market-determined rate beyond control of either borrower or lender Indexed Rate

• / 3