Type of Loans
A loan that is offered by a private lender, and typically guaranteed by Fannie Mae or Freddie Mac.
Conventional Loan
The two government-sponsored enterprises that guarantee conventional home mortgages.
Fannie Mae and Freddie Mac
A credit score that determines risk of lending based on your credit history.
FICO Score
One one-hundredth of 1%
A Basis Point
A report that estimates the market value of a property
Appraisal
A mortgage that's insured by the Federal Housing Administration
FHA Loan
A government-owned corporation responsible for the special assistance loan programs.
Ginnie Mae
A comparison of an individual’s monthly debt payment to their monthly gross income.
DTI
A fee paid to a lender for originating a loan application
Origination Fee
Insurance coverage that covers physical damage to a property from wind, fire, vandalism, etc.
Homeowners/Hazard Insurance
A loan offered to rural property owners by the United States Department of Agriculture.
USDA Loan
The Automated Underwriting system used by Freddie Mac.
Loan Prospector (LP)
The base loan amount divided by the lower of the sales price or market value.
LTV
A fee that is 1% of the amount of the mortgage
Point
The process where the borrower has committed to a mortgage interest rate.
Lock
A loan that is guaranteed by the U.S. Department of Veteran Affairs.
VA Loan
The Automated Underwriting System used by Fannie Mae.
Desktop Underwriter (DU)
The combined total payment amount to the borrower that includes the base principal owed, plus the interest, taxes and insurance.
PITI
When the cost of the rate is zero
A legal document that authorizes another person to act on one's behalf.
Power of Attorney
A loan that exceeds Conventional loan limits and is not eligible to be purchased, guaranteed, or securitized
Jumbo Loan
The Automated Underwriting System used by Ginne Mae.
GUS
Ratios used to calculate if a borrower can qualify for repayment of a mortgage.
Qualifying Ratios
The cost of a mortgage stated as a yearly rate. This includes the base interest rate, fees, prepaid interest, and other credit costs that may be paid by the client
APR
When a loan is fully approved and ready for closing.
Cleared to Close (CTC)