Podcast
Questions and Answers
If a borrower's monthly PITI is 1500 and their monthly gross income is 6000, what is their front-end ratio?
If a borrower's monthly PITI is 1500 and their monthly gross income is 6000, what is their front-end ratio?
- 35%
- 20%
- 30%
- 25% (correct)
Which of the following is NOT a factor considered in calculating the front-end ratio?
Which of the following is NOT a factor considered in calculating the front-end ratio?
- Principal
- Interest
- Taxes
- Credit card payments (correct)
What is the purpose of the back-end ratio?
What is the purpose of the back-end ratio?
- To evaluate the loan-to-value ratio
- To assess the borrower's creditworthiness
- To calculate the total monthly debt obligations (correct)
- To determine the portion of monthly income used for housing expenses
How is commission income calculated for a borrower?
How is commission income calculated for a borrower?
When using retirement or social security income for qualification, what documentation is required?
When using retirement or social security income for qualification, what documentation is required?
If a borrower's monthly gross income is 4,000 and their total monthly obligations are 1,400, what is their back-end ratio?
If a borrower's monthly gross income is 4,000 and their total monthly obligations are 1,400, what is their back-end ratio?
If a property has a value of 800,000 and the loan amount is 500,000, what is the LTV ratio?
If a property has a value of 800,000 and the loan amount is 500,000, what is the LTV ratio?
What is the primary income documentation method used in a bank statement loan program?
What is the primary income documentation method used in a bank statement loan program?
If Mark is paid 1,158 weekly, what is his monthly income?
If Mark is paid 1,158 weekly, what is his monthly income?
If Luke is paid 2,500 bimonthly, what is his monthly income?
If Luke is paid 2,500 bimonthly, what is his monthly income?
What document is used to establish the continuance of the borrower's employment?
What document is used to establish the continuance of the borrower's employment?
What type of income documentation is required to establish a two-year history of salary or W-2 income?
What type of income documentation is required to establish a two-year history of salary or W-2 income?
How should negative rental income be treated?
How should negative rental income be treated?
What percentage of ownership interest in a business qualifies a borrower as self-employed?
What percentage of ownership interest in a business qualifies a borrower as self-employed?
If a property has a value of 500,000 and the first mortgage is 400,000 with an additional home equity loan of 50,000, what is the CLTV ratio?
If a property has a value of 500,000 and the first mortgage is 400,000 with an additional home equity loan of 50,000, what is the CLTV ratio?
Flashcards are hidden until you start studying
