Types of Mortgages & Sources of Finance - Florida's Leader ...

SALES ASSOCIATE COURSE

CHAPTER 13

Types of Mortgages & Sources of Finance

Mortgage Underwriting (Analyzing Risk)

? Qualifying process ? Applicant ? Property

? Income ? Dependable and stable

? Employment ? 2 years ? Wages, bonuses,

commissions alimony, child

support ? Not:

? Temporary employment ? Unemployment ? Contributions from family

members

Qualifying the

Applicant

Qualifying the Applicant

? Other assets ? Reviewed by underwriter

? Other real estate ? Automobiles ? Stocks, bonds, etc. ? Assets attached in

foreclosure

Income Ratios

TWO QUALIFYING RATIOS

Housing Expense

PITI GMI

Total Obligations

PITI + All Debts GMI

28%

Conventional

36%

31%

FHA

43%

-

VA

41%

PITI - principal, interest, taxes, insurance

GMI - gross monthly income

5

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download