3. On an FHA loan how many years must the borrower pay MIP? a. 3 years and 80% LTV b. 5 years and 78% LTV c. 7 years and 78% LTV d. as long as the balance is above 80% LTV

4. How are FHA maximum loan limits established? a. there are no loan limits only income limits b. loan limits are based on income and credit score c. the lesser of the county loan limit or the applicable LTV limit d. loan limits are established by HUD based upon state housing averages

5. The disadvantages to FHA loans are: a. the relatively low loan limits in certain areas b. the cost of the monthly MIP c. investment property loans are not available through FHA d. all of the above

6. Are FHA loans assumable? a. yes, but only if it is a relative of the owner b. no, never c. yes, FHA loans are assumable d. yes, however, the owner is forever liable

7. VA loans are: a. government insured loans b. government guaranteed loans c. government funded loans d. government serviced loans

8. What is the upfront VA guarantee fee called and how much does it cost? a. VA guarantee fee and it costs 3% b. VA funding fee and it cost 5% c. VA funding fee and 2.15% for 0 to 4.99% down payments d. There are no upfront fees, the VA funding fee is paid monthly

9. Can the VA Funding Fee ever be waived? a. yes, for disabled veterans or for spouses of veteran who died in service b. yes, for veterans over the age of 65 c. yes, but only for veterans with an establish loan track record d. no, the VA funding can never been waived however it can be paid by the seller or financed into the loan

10. What are the VA loan debt ratios? a. 29% over 43% b. 31% over 41% c. 29% over 45% d. 41%

11. The standard VA entitlement is? a. $154,000 b. $36,000 c. $417,000 d. $217,700

12. What are the biggest advantages of the USDA Rural Development (RD) Guaranteed Housing Loan Program? a. no maximum income limits b. the streamline refinance of conventional and sub-prime loans c. no down payment required, no maximum lot size d. no minimum credit score and no income limits

13. Are there any upfront fees on USDA-RD loans? a. no, if the borrower agrees to a pre-payment penalty clause b. no, however there is monthly USDA insurance included c. yes, and it can be financed into the loan d. yes, there is a funding fee

14. What are the allowable debt ratios on a USDA-RD purchase money loan? a. 43% total debt ratio b. 28% over 36% c. 29% over 41% d. 31% over 45%

15. Are there minimum or maximum loan amounts on USDA-RD loans? a. no minimums with $417,000 maximum loan limit b. 100 k minimum with $417,000 maximum loan limits c. no minimum, maximum based on country median price d. no maximum, loan limits based upon median area income

16. Government sponsored loans are: a. loans not directly lent by, or through a government agency b. loans underwritten and serviced by a government agency c. underwritten, lent and serviced by a government agency d. all of the above

17. On VA guaranteed loans, the veteran can receive gift fund for cash requirements and: a. the seller can contribute 4% of the sales price b. the seller can contribute 6% of the sales price c. the seller can take back a second to 110% CLTV d. none of the above

18. Bill and Karen have agreed to buy a home for $95,000. They have little cash for closing costs and have applied for a USDA RD loan where the closing costs are $5,000 and the guarantee fee is 2%. The home has appraised for $100,000. How much cash will Bill and Karen have to bring to closing? a. $5,000; the guarantee fee will be financed b. $7,000; in USDA RD loans costs and fees can�t be financed c. $0; all closing costs and fees will be financed in this loan d. $2,000; costs and fees can be financed up to the appraisal value

19. A USDA RD 2/1 temporary buy down is a 2 year subsidy on behalf of the borrower. If a 30 year loan at a 7% interest rate was being temporarily discounted with a 2/1 buy down, what would the interest rates be in year one and year two and what note rate would be used for Truth-In-Lending disclosure purposes? a. 5% - 5% and 5% on the TIL b. 5% - 6% and 7% on the TIL c. 5% - 5% and 7% on the TIL d. 5% - 6% and 6% on the TIL

20. Charles is applying for a USDA RD loan to purchase an attached and deeded manufactured home from his brother who set it up 8 years ago on 10 acres of land. The appraised value is $175,000 and Charles can buy it for $150,000. The lender is requiring some badly rotted deck boards be replaced which will cost $2,500. The closing costs will total $5,000 plus a 2% guarantee fee. What will the loan amount total if Charles wants to minimize his out of pocket cost? a. $175,500 b. $160,650 c. RD will not do this loan because it�s an existing manufactured home. d. $158,100