5 Credit Scoring (20 pts.) Note: LTV = Loan-to-Value Loan Request Amount/Value of Home Standard...
70.2K
Verified Solution
Link Copied!
Question
Accounting
5 Credit Scoring (20 pts.) Note: LTV = Loan-to-Value Loan Request Amount/Value of Home Standard Mortgage Program: 30-year fixed term, 5% fixed rate, annual payments Following conditions must be met: a) Total Annual Mortgage Payment 28% of Gross Income b) Total annual debt payments (mortgage + other debt payments) c) LTV 0.8 (at least a 20% down payment) 36% of Gross Income First-time Homebuver Mortgage Program: 30-year fixed term, 5% fixed rate, annual payments on first mortgage up to 80% of home value 15-year fixed term, 7% fixed rate, annual payments on second mortgage up to 15% of home value Following conditions must be met: a) Total Annual Mortgage Payments 28% of Total Gross Income b) Total annual debt payments (mortgage + existing debt payments) $ 36% of Total Gross Income c5% minimum down payment Note: For the first-time homebuyer program, the first mortgage is maxed out first at 80% of the value or purchase price of the home. The second mortgage is then used to cover the difference between the remaining 20% of the purchase price and the down payment the buyer is able to make
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
