This course provides an introduction to residential real estate finance, including information on how to underwrite FHA, VA, FNMA and FHLMC loans. Understanding this information will help the student assist his or her buyer- and seller-clients from the initial meeting, through the closing proceedings with basic financing and loan-qualification questions.

In accordance with TREC rules Sections 535.71 and 535.72D, in this course, you will learn the basics of the different types of loans available, loan applications, appraisals, escrow, titles and credit reports, including qualifying for loan amounts and verifying income and assets.

Upon completion of this module, the student will know how to calculate loan amounts, estimate monthly payments, property taxes, hazard and mortgage insurance (for conventional, FHA and VA) and qualifying ratios and income.

Learning Objectives

Upon Completion of this course, the student will:

• Understand the basic concepts of real estate financing, and the key terms involved
• Know how to qualify a buyer for the most common types of loans
• Be familiar with the use and function of escrow accounts
• Know what a Mortgage Insurance Premium is
• Know the underwriting guidelines and process
• Be familiar with the three most common types of loans: Conventional, FHA and VA
• Know the advantages and disadvantages of conventional loans
• Know how to use conventional qualifying ratios
• Know the advantages and disadvantages of FHA loans
• Know about the differing FHA qualification ratios
• Know the advantages and disadvantages of VA loans
• Be familiar with VA eligibility and qualification periods
• Be able to calculate the amount of VA entitlement used
• Be able to calculate VA loan amounts and required down payments
• Know the process and qualifications for assuming VA and FHA loans
• Be familiar with other types of loans available
• Know how to underwrite and close loans