Practice Test Geeks(CMA) Certified Mortgage Advisor Practice Test
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Mortgage Products and Programs Flashcards

7 cards from real CMA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Mortgage Products and Programs flashcards as text

  1. Which loan program allows a borrower to finance both the purchase price and renovation costs into a single mortgage?

    Answer: FHA 203(k) loan

    The FHA 203(k) loan combines home purchase and renovation financing into one mortgage, making it ideal for fixer-uppers.

  2. A borrower wants to refinance their existing VA loan with minimal documentation and no appraisal. Which program applies?

    Answer: VA Interest Rate Reduction Refinance Loan (IRRRL)

    The VA IRRRL (also called VA Streamline) allows veterans to refinance with reduced documentation and typically no appraisal.

  3. What distinguishes a 'super conforming' loan from a standard conforming loan?

    Answer: It exceeds the standard loan limit but stays within higher limits for designated high-cost areas

    Super conforming loans exceed the baseline conforming loan limit but fall within the higher limits set by FHFA for high-cost housing markets.

  4. Under the USDA Guaranteed Loan Program, what is the maximum debt-to-income ratio typically allowed without a compensating factor?

    Answer: 29% front-end / 41% back-end

    USDA Guaranteed Loans typically allow a maximum of 29% front-end and 41% back-end DTI ratios without compensating factors.

  5. A borrower has a FICO score of 580 and wants the minimum possible down payment on an FHA loan. What is the minimum down payment required?

    Answer: 3.5%

    Borrowers with credit scores of 580 or higher qualify for FHA's minimum 3.5% down payment; scores below 580 require 10%.

  6. Which feature of an adjustable-rate mortgage limits how much the interest rate can increase over the life of the loan?

    Answer: Lifetime cap

    The lifetime cap restricts the maximum interest rate increase over the entire loan term, regardless of index movements.

  7. Which mortgage product is specifically designed for energy-efficient home improvements and allows the cost to be rolled into a conventional mortgage?

    Answer: Fannie Mae HomeStyle Energy

    Fannie Mae's HomeStyle Energy mortgage allows borrowers to finance energy efficiency improvements within a conventional loan.