DSCR Loan Quiz for Mississippi Homebuyers

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Questions and Answers

What is the minimum loan size for Loanguys.com?

$100,000 (correct)

$500,000

$50,000

$200,000

Which of the following is an eligible property for Loanguys.com?

Vacant land

Single-family detached home (correct)

Properties not accessible by local roads

Agricultural properties

What is the debt service coverage ratio (DSCR)?

The estimated monthly market rent divided by the monthly PITIA of the subject property

The original loan amount of the first mortgage divided by the property's appraised value or sales price

The monthly gross income divided by the principal, interest, taxes, insurance, and other expenses (PITIA) of a property (correct)

The total amount of debt divided by the total amount of assets

What is the maximum loan size for Loanguys.com?

$2,000,000 Signup and view all the answers

Which of the following is an ineligible borrower for Loanguys.com?

Not-for-profit entities Signup and view all the answers

What is the loan-to-value (LTV) ratio?

The original loan amount of the first mortgage divided by the property's appraised value or sales price Signup and view all the answers

What are the liquidity requirements for Loanguys.com?

All of the above Signup and view all the answers

What is PITIA?

The monthly gross income divided by the principal, interest, taxes, insurance, and other expenses (PITIA) of a property Signup and view all the answers

What is the minimum loan size for the loan programs mentioned?

$100,000 Signup and view all the answers

Which of the following is an eligible borrower for the loan programs?

Individuals Signup and view all the answers

What types of properties are eligible for the loan programs?

Condominiums, planned unit developments, and 5-8 unit residential properties Signup and view all the answers

What is the debt service coverage ratio (DSCR)?

The monthly gross income divided by the principal, interest, taxes, insurance, and other expenses (PITIA) of a property Signup and view all the answers

What is the maximum loan size for the loan programs mentioned?

$2,000,000 Signup and view all the answers

What is the difference between a 5/6 adjustable-rate mortgage and a 7/6 adjustable-rate mortgage?

The number of adjustable periods Signup and view all the answers

What is the required liquidity for foreign nationals or those with a DSCR < 1.0?

12 months of PITIA Signup and view all the answers

What is the loan-to-value (LTV) ratio?

The original loan amount of the first mortgage divided by the property's appraised value or sales price Signup and view all the answers

Study Notes

Loan Program and Eligibility Requirements Summary

Loan programs include 30-year fixed rate, 10-year interest-only, 5/6 adjustable-rate mortgages (fully amortized or interest-only), and 7/6 adjustable-rate mortgages (fully amortized or interest-only).
Eligible borrowers include individuals, limited liability companies, corporations, limited liability partnerships, foreign nationals, and revocable trusts.
Ineligible borrowers include those with diplomatic immunity, those on exclusionary lists, irrevocable trusts, land trusts, blind trusts, and not-for-profit entities.
Minimum loan size is $100,000 and maximum loan size is $2,000,000.
Debt service coverage ratio (DSCR) requirements vary based on loan type and credit score.
Loan-to-value (LTV) and combined loan-to-value (CLTV) ratios vary based on credit score, loan purpose, and property occupancy.
Gross rents are used in DSCR calculations and must be verified through fully executed lease agreements or market rents from Fannie Mae Form 1007 or Form 1025.
Eligible properties include single-family detached or attached homes, 2-4 unit residential properties, condominiums, planned unit developments, and 5-8 unit residential properties.
Ineligible properties include vacant land, properties not accessible by local roads, properties unsuitable for year-round occupancy, agricultural properties, and properties used for marijuana cultivation or distribution.
Liquidity requirements include 1% of unpaid principal balance on all mortgages, nine months of subject property loan monthly PITIA, and 12 months of PITIA for foreign nationals or DSCR < 1.0.
Qualifying assets include bank statements, stocks/bonds/mutual funds, vested retirement accounts, and cash value of life insurance.
Prepayment penalties are required for investment properties and declining prepayment penalty structures are allowed in Mississippi.Real Estate and Mortgage Terminology
First-time home buyers are individuals who have not owned a principal residence in the past three years.
A lease is a written agreement between a property owner and a tenant that outlines the conditions of renting the property for a set period of time.
The loan-to-value (LTV) ratio is the original loan amount of the first mortgage divided by the property's appraised value or sales price.
A prepayment penalty is a fee charged for paying off part or all of the principal of a loan before the due date.
A sales contract is a written agreement between parties for the purchase, sale, exchange, or conveyance of a property.
Debt service coverage ratio (DSCR) is the monthly gross income divided by the principal, interest, taxes, insurance, and other expenses (PITIA) of a property.
Loanguys.com charges various fees based on loan amount and type, including a processing fee, underwriting fee, document preparation fee, and credit report fee.
A displaced homemaker or single parent can qualify as a first-time home buyer if they have not owned a principal residence in the past three years (excluding joint ownership with a spouse).
PITIA includes the principal, interest, taxes, insurance, and other expenses associated with owning a property.
Sales contracts must include the full names of the buyer(s) and seller(s), property address or legal description, sales price, and signatures of the parties.
The debt service coverage ratio is calculated by dividing the estimated monthly market rent by the monthly PITIA of the subject property.
Loanguys.com charges 2% of the total loan amount for commercial loans and 2.75% for fix and flip/bridge loans, with varying fees based on loan amount.

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Description

Do you know the ins and outs of loan programs and eligibility requirements? Test your knowledge with this quiz! From loan types to borrower eligibility, property requirements to liquidity requirements, and even real estate and mortgage terminology, this quiz covers it all. Whether you're a first-time home buyer or a seasoned investor, this quiz will put your knowledge to the test and help you better understand the world of loans and mortgages. So, are you ready to take the quiz and see how much you really know?