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17 Cards in this Set
- Front
- Back
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Which government backed organization is entirely government owned? |
GNMA, government national mortgage associaiton, aka Ginnie Mae. G1170.20 |
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What is the role of FAnnie Mae and FReddie Mac? |
To buy mortgages on 2nd market, issue bonds to investors, and guarantee the investment. G1170.20 |
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What is the role of Ginnie May? |
to back up promises of FM and GM, VA, and FHA. G1170.20 |
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Does Ginnie Mae buy loans? |
NO. But they make them easier to sell for other organizations. G1170.20 |
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A conventional loan can have any interest rate. True or false? |
true. Not governed by the feds. G1170.21 |
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Does FHA buy loans? |
No. FHA provides insurance to lenders. G1170.22 |
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John wants an FHA loan but his credit score is 570. HOw much will he need as down payment? |
10%. If he had 580+, he would need only 3.5%. G1170.22 |
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Does FHA allow borrowers to receive gifts for down payments? |
yes. G1170.22 |
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The catch with FHA loans is that you must pay _____ each month, and upfront, if equity is less than 20%. |
mortgage insurance premiums. G1170.22 |
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With an FHA loan, can you have a negative loan to value ratio? |
yes. Happens because of costly mortgage insurance premiums. G1170.22 |
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To get rid of insurance premium payments, an FHA borrower must: |
refinance with conventional loan. G1170.22 |
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FHA borrowers who default lose house to a HUD auction, in which bidders must: |
take on entire debt burden. G1170.22 |
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In FHA foreclosure, FHA will compensate _____ |
the lender. Then FHA auctions HUD home to pay themselves back. G1170.22 |
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Who pays most closing costs in FHA loan transaction? |
FHA. G1170.22 |
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Are FHA loans assumable? |
Yes, if owner occupied, but post-1989 loans can only go to a qualified borrower. G1170.22 |
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Which FHA loans are NOT assumable? |
rental property loans. G1170.22 |
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Which upfront closing costs can be rolled into principal of an FHA loan? |
a) discount points b) 1% origination fee c) up front mortgage premium G1170.22 |
