A borrower applies for a $350,000 mortgage with a 43% debt-to-income ratio, a 20% down payment, and no risky features. The loan meets all General QM requirements except the loan amount. What is the status of this loan?
Correct Answer
C) It is a non-QM loan but meets ATR requirements
The General QM loan limit for 2024 is $766,550 for most areas, so $350,000 is well within limits. However, if this exceeds the conforming loan limit for the area ($766,550), it would be a non-QM loan. The loan meets ATR requirements based on the 43% DTI and safe features described.
Why This Is the Correct Answer
The General QM loan limit for 2024 is $766,550 for most areas, so $350,000 is well within limits. However, if this exceeds the conforming loan limit for the area ($766,550), it would be a non-QM loan. The loan meets ATR requirements based on the 43% DTI and safe features described.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
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