Spring Break Quiz 2017

Depending on where you live, you may have already had Spring Break, you may be just starting it, or you may still be waiting for it to begin. Whatever your situation, you probably have your mind on things that are more closely related to applying sunscreen than applying for a loan - I get that. So, instead of writing an article, I thought I'd give you a short quiz just to keep you on your toes. Don’t worry, this is all multiple choice, and I’m not going to ask you to compute the debt-to-income ratio for someone who is self-employed and holds some of his personal assets in an LLC and the other half in his ex-girlfriend’s name. Nevertheless, buckle up:

1. On an FHA loan, if the borrower has a 540 FICO score, what’s the amount of the down payment required?

A. 3.5%

B. 5%

C. 10%

D. Photos that can be used as blackmail for the underwriter

2. What length of time does someone with a short sale, bankruptcy, or foreclosure have to wait after it discharges BEFORE they can qualify for a mortgage?

A. 1 day

B. 3 years

C. 7 years

D. Once the Supreme Court has all nine justices – and one has to have freckles

3. A person may qualify for a 1% down payment on a Conventional purchase with a minimum FICO score of:

A. 650

B. 700

C. 750

D. Dream on! This isn’t a scene from It’s a Wonderful Life.

4. Someone wishes to purchase a single-family residence as an investment property. What’s the minimum down payment required?

A. 15%

B. 25%

C. 30%

D. Your firstborn but only if he/she can play three sports AND an instrument

5. How many financed properties can one person have?

A. 6

B. 10

C. Unlimited

D. It’s a tricky algorithm involving the Earth’s circumference and pregnant pigeons in Utah

How do you think you did? Here goes: (1) You only need 10% down on an FHA loan when your FICO is 540 (side note: bump it up to 580, and you only have to put 3.5% down). (2) Just one day! Yes, you read that correctly. (3) A 700 FICO can get you qualified for a 1% down payment on a Conventional purchase – you can purchase a nice gift for your favorite LO with the money you’re saving. (4) For an investment property that’s a single-family residence, only 15% is required. (5) Many banks will limit you at 6 financed properties; some will go as far as 10. Yes, we can help you acquire an unlimited number of financed properties – but first, enjoy Spring Break and remember this: if it’s not on YouTube, it didn’t happen (good or bad).