HUD Exam Prep Questions And Answers

HUD Exam Prep Questions And Answers Conventional Loan - answerFront end 28% Back end 36% can go up to 45% to 50%(debt to income), backed by private lenders. AKA prime loans. Good credit, 20% down payment. May have interest only terms FHA - answerFront end 31% Back end 43% Limited funds, bad credit, bankruptcy, high debt to income ratio. EEM (Energy) FHA - answerFront end 33% Back end 45% VA - answer41% USDA - answerFront End 29% Back End 41%, low-to-moderate income, must live rural area, no down payment, competitive rates. Bellow 115% median income. Loan term 33 to 38 yrs Equal Credit Opportunity Act (ECOA) - answerA federal act, which prohibits discrimination by lenders on the basis of sex or marital status in any aspect of a credit transaction. Front end Ratio - answerPITIA/ Gross Income Within three days of receiving a loan application, lenders are required to supply the client with - answerLoan Estimate How may years at a job to show employment stability? - answerAt least 2 years Which factor determines whether the client will have to pay private mortgage insurance versus mortgage insurance premium - answerType of loan The Fair Housing Act - answerThe federal law that prohibits discrimination in housing based on race, color, religion, sex, handicap, familial status, and national origin The Housing and Urban Development Act - answerproviding government-insured loans to moderate-income people. The Dodd-Frank Act - answerprotects borrowers from predatory lending practices