Hud Prep Final Actual Exam 2024

Hud Prep Final Actual Exam 2024 Conventional Loan - CORRECT ANSWER-Front 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 - CORRECT ANSWER-Front end 31% Back end 43% Limited funds, bad credit, bankruptcy, high debt to income ratio. EEM (Energy) FHA - CORRECT ANSWER-Front end 33% Back end 45% VA - CORRECT ANSWER-41% USDA - CORRECT ANSWER-Front 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) - CORRECT ANSWER-A 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 - CORRECT ANSWER-PITIA/ Gross Income Within three days of receiving a loan application, lenders are required to supply the client with - CORRECT ANSWER-Loan Estimate How may years at a job to show employment stability? - CORRECT ANSWER-At least 2 years Which factor determines whether the client will have to pay private mortgage insurance versus mortgage insurance premium - CORRECT ANSWER-Type of loan The Fair Housing Act - CORRECT ANSWER-The 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 - CORRECT ANSWER-providing government-insured loans to moderate-income people. The Dodd-Frank Act - CORRECT ANSWER-protects borrowers from predatory lending practices Affirmatively Furthering Fair Housing (AFFH) - CORRECT ANSWER-Advocating for lenders to operate in underserved areas