Alternative Financing Options and Helpful Origination Basics

What is a Non-Traditional Mortgage?

What type of mortgage is an adjustable rate mortgage that can be converted to a fixed-rate mortgage and usually incurs a fee?

• Convertible Arm

• Balloon Mortgage

• Interest-Only Mortgage

• Reverse Mortgage

A Balloon Mortgage has equal monthly payments and a large payment due at a predetermined future date. The balloon amount must be at least how many times the monthly debt service?

• 2 times

• 1.5 times

• 3 times

• 5 times

A Bi-Weekly Mortgage is a fixed rate mortgage with payments due every weekend instead of once a month. The loan will be paid off in how many years?

• 26-27 years

• 15 years

• 30 years

• 20 years

What is a Reverse Mortgage?

What is a Construction Loan, CP (Construction to Permanent)?

• A short term first mortgage where the borrower closes first on the construction portion which is usually an ARM with an interest rate around the prime rate or slightly above, and when the home is completed, the mortgage is modified and changes into a permanent loan.

• A long term fixed-rate mortgage used exclusively for purchasing commercial properties.

• A type of loan used to refinance existing home loans at a lower interest rate.

• A government grant provided to first-time home buyers for construction purposes.

What is a Bridge Loan used for?

How many years of history are required for all types except child support according to Chapter 6 – Helpful Origination Basics?

Employment verification requires a two year history. What must be provided if there are gaps over 30 days?

• Explanation for gaps over 30 days

• Proof of address for the gap period

• A letter from a previous employer for all jobs

• A copy of tax returns for the gap period

Self-employment borrowers require two year signed tax returns if over what percentage of corporation?

• 25%

• 10%

• 50%

• 5%