General mortgage knowledge
Program questions ask which loan fits a borrower: conventional, FHA, VA or USDA, and what each one costs. Know who backs each program, the occupancy rules, the mortgage insurance or fee structure, and the 2026 conforming limits.
General mortgage knowledge4 min read7 sections
General mortgage knowledge is 20% of the test. Program questions are usually short scenarios: a veteran, a rural buyer, a borrower with a 545 score, an investor. Match the borrower to the program and know its signature cost.
| Conventional | FHA | VA | USDA guaranteed | |
|---|---|---|---|---|
| Backing | None (GSE purchase if conforming) | Insured by HUD/FHA | Guaranteed by VA | Guaranteed by USDA Rural Development |
| Minimum down | Often 3%-5%; 97% LTV programs have conditions | 3.5% (580+ score) | 0% with full entitlement | 0% |
| Mortgage insurance or fee | PMI above 80% LTV; cancellable | UFMIP 1.75% plus annual MIP | Funding fee; no monthly MI | Upfront and annual guarantee fees set yearly by USDA |
| Occupancy |
Every note. Every question. One pass.
5 more sections of this note are part of Premium.
From about US$8.25/mo on the Until-you-pass pass (12 months)
| Primary, second home or investment |
| Primary residence (1-4 units) |
| Primary residence |
| Primary residence |
| Eligibility | Credit and capacity | Credit and capacity; FHA limits | Military service (Certificate of Eligibility) | Rural area; income up to 115% of area median |
| Seller concessions | 3%/6%/9% by LTV; 2% investment (Fannie Mae B3-4.1-02) | Up to 6% | Up to 4% of reasonable value (normal closing costs excluded) | Program limits apply |
