A manufactured home loan secured by both the home and land has a 35-year term, 41% DTI ratio, and no risky features. The borrower has excellent credit. What QM category might this loan qualify for?
Correct Answer
D) This loan cannot qualify as QM
Under 12 CFR 1026.43(e)(2)(ii), qualified mortgages cannot exceed 30 years. While manufactured home loans have some special considerations, the 35-year term disqualifies this loan from any QM category, regardless of the favorable DTI ratio and lack of other risky features.
Why This Is the Correct Answer
Under 12 CFR 1026.43(e)(2)(ii), qualified mortgages cannot exceed 30 years. While manufactured home loans have some special considerations, the 35-year term disqualifies this loan from any QM category, regardless of the favorable DTI ratio and lack of other risky features.
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