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What are three characteristics of a Prime/Conventional/Truly Qualified, Primary Residential Real Estate Loan?
What are three characteristics of a Prime/Conventional/Truly Qualified, Primary Residential Real Estate Loan?
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Expert Solution
The three main characteristics of a Prime/Conventional/Truly Qualified, Primary Residential Real Estate loan are ;
1. It does not allow some risky features like interest only period , baloon payment and negative amortiation.
2. Mortgage terms must be 30 years or less.
3. Total points and fees cannot exceed three percent of the loan amount . The borrowers' montly Debt to Income ratio (DTI) should be 43 percent or less and the loan must be eligible for purchase by Fannie Mae or Freddie Mac or insured by FHA / US department of Veterans Affairs / USDA regardless of DTI ratio.
jeff jeffy answered 2 years agoRelated Solutions
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