Use this while learning and later as a desk reference. It connects borrower questions to mortgage rules, calculations, programs, documentation and workflow.
Learn what each major application section is trying to establish and which borrower answers require follow-up.
OPEN TOPICTeach the new LO to identify the income type before trying to calculate it. The question is not 'How much do you make?' but 'What kind of income is this, how stable is it, and how is it documented?'
OPEN TOPICA strong LO does not ask every borrower for the same giant document list. Build the request from the borrower’s actual income, assets, credit, property and program.
OPEN TOPICThe formulas are simple. The skill is knowing which numbers belong in them and what the result means for program selection.
OPEN TOPICNew LOs should understand the complete loan lifecycle so they know what to collect, what to communicate and what can still change.
OPEN TOPICFHA is more than “3.5% down.” Learn the cash-to-close, mortgage-insurance, seller-contribution, occupancy, DTI/AUS and documentation logic behind the program.
OPEN GUIDEVA requires more than asking “Are you a veteran?” Learn eligibility, entitlement, occupancy, residual income, funding fee, seller concessions and why VA has no monthly mortgage insurance.
OPEN GUIDEUSDA is not simply “rural = zero down.” Students must understand property eligibility, household income, repayment income, 100% financing, guarantee/annual fees and the current 34%/41% ratio framework.
OPEN GUIDEConventional is not one loan. Teach agency eligibility, LTV, PMI, seller contributions, DU/LPA, occupancy, gifts, reserves and why a borrower with 3% down may or may not fit a 97% LTV product.
OPEN GUIDEDSCR is a lender-specific investor product category, not one agency rulebook. Teach the cash-flow math, questions, documentation, reserves and why every guideline must be checked against the actual investor.
OPEN GUIDE| Program | Training Rule | What the LO must understand |
|---|---|---|
| FHA | Generally up to 6% of sales price for eligible costs | Cannot satisfy FHA minimum required investment; excess can become inducement to purchase. |
| VA | Seller concessions generally capped at 4% of reasonable value | Normal closing costs and normal discount points are treated separately from the 4% concession definition. |
| USDA | Generally up to 6% of sales price | Credit cannot exceed eligible/actual costs and does not change program eligibility. |
| Conventional/Fannie | 3% / 6% / 9% based on LTV for principal/second home; 2% investment | IPCs cannot fund down payment or reserves; exact rules depend on transaction and investor. |
| DSCR | Investor/lender specific | Never assume agency seller-contribution rules apply to non-QM investor products. |
Rules reviewed for this build: September 5, 2026. The Academy intentionally distinguishes durable concepts from numbers that can change.
Use the current HUD Single Family Housing Policy Handbook 4000.1 and FHA Mortgage Insurance Premium guidance.
Use the current VA Lenders Handbook and VA Home Loan Guaranty funding-fee/closing-cost guidance.
Use HB-1-3555, current GUS guidance and USDA LINC lender training. Current training reflects the 34% PITI / 41% total-debt framework.
Use current Fannie Mae/Freddie Mac Selling Guides, eligibility matrices and DU/LPA findings.
Use the actual investor/lender matrix. There is no single agency DSCR rulebook.
Knowledge base maintained for training. Program details can change. Always verify current agency, investor, lender, AUS and state-specific rules before using a number in a live transaction.