Financing Topic — Quick Reference Cheat Sheet

Deed of Trust vs. Mortgage

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Loan Types

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Qualifying Ratios

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Foreclosure Timeline (Non-Judicial — CA)

Default

NOD (Notice of Default) recorded → 3-month reinstatement period

NTS (Notice of Trustee's Sale) → 20-day posting/publication

Trustee's Sale

• Reinstatement right: up to 5 business days before sale

• CCP §580b: anti-deficiency — no deficiency judgment on purchase money deed of trust

TRID Disclosures

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Feature	Deed of Trust (CA)	Mortgage
Parties	Trustor / Trustee / Beneficiary	Borrower / Lender
Foreclosure	Non-judicial (trustee's sale)	Judicial (court)
Speed	Faster (~4 months)	Slower
Redemption right	None after non-judicial sale	Judicial: 1-year redemption
Loan	Down	Key Feature
Conventional conforming	20% (avoid PMI) or 3-5% + PMI	No govt guarantee
FHA	3.5%	MIP upfront + annual; assumable
VA	0%	Funding fee; COE required; no PMI
CalVet	0%	Land contract; CA veterans; CalVet holds title
USDA	0%	Rural areas; income limits
ARM	Varies	Index + Margin = Rate; caps: periodic/lifetime
Ratio	Conventional	FHA
Front-end (PITI ÷ income)	28%	31%
Back-end (all debt ÷ income)	36%	43%
Form	When	Deadline to Change
Loan Estimate (LE)	Within 3 business days of application	Binding 10 days
Closing Disclosure (CD)	3 business days before close	Must wait 3 days before close

Right of rescission (non-purchase money refinance): 3 business days; TILA violation = 3 years

Common Exam Traps

• CalVet = land contract, NOT deed of trust; CalVet holds title until paid off

• ARM: index is variable; margin is fixed; rate = index + margin

• FHA MIP = upfront (1.75% of loan) + annual; VA = funding fee (no annual premium)

• Anti-deficiency (CCP §580b): protects purchase money borrower from deficiency judgment after non-judicial foreclosure

• LTV = Loan ÷ Value; PMI required when LTV > 80% on conventional

• RESPA §8: prohibits kickbacks for referrals of settlement services