Shared Flashcard Set

Details

AAG NMLS SAFE & UST
Chp 7 - Government Loan Programs
16
Real Estate & Planning
Professional
02/27/2014

Additional Real Estate & Planning Flashcards

 


 

Cards

Term
Direct Endorsement Program
Definition
Simplifies and speeds the process by which mortgagees can gain mortgage insurance endorsements from HUD
Term
FHA Direct Endorsement Lender (DE)
Definition
Lender is authorized to underwrite and close mortgage loans without prior submission for FHA review or approval
Term
FHA 4 C's
Definition
  • credit
  • capacity
  • cash
  • collateral
Term
FHA Compensating Factors
Definition
  1. Housing Expense Ratio
  2. down payment
  3. accumulated savings
  4. previous credit history
  5. compesation or imcome not reflected in effective income
  6. minimal housing expense increase
  7. substantial cash reserves
  8. substancial non-taxable income
  9. potential for increased earnings
  10. primary wage-earner relocation
Term
Property Guidelines for FHA loans
Definition
  • eligibility of the property
  • condition of the property
  • maximum mortgage amount permitted where the property is located
  • occupancy
Term
FHA Owner occupancy
Definition
  • required to occupy the property within 60 dys of closing
  • required to occupy the property for a minimum of 1 year
Term
FHA seller/third party contribution limits
Definition
up to 6% or value or sales price (the lessor of the two)
Term
UFMIP
Definition

Upfront Mortgage Insurance Premium

  • max 1.75% of loan amount
Term
VA loans COE
Definition
Certificate of Eligibility
Term
entitlement
Definition
  • a veteran's maximum guaranty amount
  • 25% of the purchase price or value (lessor of the 2)
  • all eligible veterans receive $36k of basic entitlement
  • max entitlement amount is $104,250 (max purchase price at 0% DP is $417K
Term
residual income
Definition
amount of income remaining after subtracting taxes, housing expenses and all recurring debts and obligations
Term
NOV
Definition
Net Of Value
Term
CRV
Definition
Certificate of Reasonable Value
Term
VA variable funding fee
Definition
  • non-refundable, one-time fee at closing for guaranteeing the loan
  • waived for disabled veterans and surviving spouses of veterans who died in service or from service-connected disabilities
  • max 3.30%of loan amount
Term
Veterans cannot be charged the following fees under VA regulations
Definition
  • attorney's fees
  • brokerage fees
  • prepayment penalties
  • builder's HUD/FHA inspection fees

(in addition to the itemized fees the lender may charge a flat fee, not to exceed 1% of the loan amount, to cover the lender's costs and services for originating the loan. if the loan does not close for any reason, the lender must refung this 1% flat fee.

Term
USDA Rural Development Programs = Section __
Definition
Section 502 loans
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