Which statement about USDA Rural Development loan guarantee fees is correct?
Correct Answer
C) There are both upfront and annual guarantee fees
USDA Rural Development loans require both an upfront guarantee fee (typically 1% of the loan amount) and an annual guarantee fee (typically 0.35% of the outstanding loan balance). This structure is similar to FHA loans with both upfront and annual MIP.
Why This Is the Correct Answer
USDA Rural Development loans require both an upfront guarantee fee (typically 1% of the loan amount) and an annual guarantee fee (typically 0.35% of the outstanding loan balance). This structure is similar to FHA loans with both upfront and annual MIP.
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A borrower's ARM has a lifetime cap of 5% above the initial rate. If the initial rate was 3.25%, what is the maximum interest rate this borrower could ever pay?
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A mortgage loan originator receives partial application information on Monday at 2:00 PM, including the borrower's name, income, and SSN. The property address and estimated value are provided Tuesday at 10:00 AM, and the loan amount is submitted Wednesday at 11:00 AM. When must the Loan Estimate be delivered?