Veteran Homebuyer — Compare Before You Recommend
Purchase Price$350,000
Credit700 est.
Income$9,000/mo gross
Other Debts$1,350/mo
Cash Available$35,000
MilitaryEligible veteran; primary home
Estimated total housing payment for training purposes: $2,450/month. Borrower wants to preserve cash if possible and expects to occupy the home.
Your job: Identify the likely first program to investigate, calculate back-end DTI using the supplied training estimate, identify follow-up questions and build the initial document list. Do not assume final eligibility from this summary.
1. Which program deserves immediate investigation?
2. Estimated back-end DTI?
3. Important VA-specific follow-up?
4. Best initial document direction?
5. Why compare alternatives even if VA is available?
A strong analysis begins with VA because of the borrower’s eligible veteran status and primary occupancy, but final advice requires current guideline review and comparison. Training DTI: ($2,450 housing + $1,350 debts) ÷ $9,000 = approximately 42.2%.
Low-Cash Rural Buyer — Ask Before You Choose
Purchase Price$220,000
OccupancyPrimary
Cash$8,000
Income$6,400/mo gross
LocationSmall-town/rural area
MilitaryNo
Borrower wants the lowest practical out-of-pocket structure. Property address is not yet under contract.
Your job: Do not jump directly to FHA. Determine whether USDA may be available, while recognizing property and household eligibility must be verified.
1. Which question is critical before ruling USDA in or out?
2. Why not automatically choose FHA?
3. If USDA area/income eligibility fails, what should happen?
4. Which statement is best?
5. What should an LO communicate?
The key skill is resisting premature program selection. USDA can be attractive for eligible low-cash primary-residence borrowers, but geographic, household-income and other requirements must be verified. The LO’s role is to screen intelligently, then confirm.
Investment Property — Recognize When DSCR Belongs in the Conversation
Purchase Price$300,000
Down Payment25%
OccupancyNon-owner investment
Market Rent$2,650/mo
PITIA Estimate$2,300/mo
Borrower GoalQualify mainly from property cash flow
Your job: Calculate the simplified training DSCR, identify why DSCR financing may fit the stated goal, and recognize lender-specific terms that must be checked.
1. Simplified training DSCR using rent ÷ PITIA?
2. Why consider DSCR?
3. What else should be reviewed?
4. Is simplified rent ÷ PITIA universally the final qualifying calculation?
5. Best initial document direction?
Training DSCR = $2,650 ÷ $2,300 ≈ 1.15. That suggests a potentially workable cash-flow profile, but actual qualification depends on the specific lender’s calculation and requirements.
✓ Laboratory Milestone Completed
You passed all three borrower laboratories. This is not a professional license or NMLS credential, but it confirms completion of this Academy milestone. You completed the borrower-lab milestone. A recommended next step is the SAFE Study Center, but SAFE study is available independently at any time.