Alphabet Soup
The annual cost of borrowing expressed as a %
APR
Experian, Equifax, and Transunion are these
The state agency offering assistance to first-time home buyers
IHCDA
A program established to help veterans obtain home financing with no down payment/no mortgage insurance
VA Loan
A deposit made by a home buyer when entering a purchase agreement for a home
Earnest Money
The ratio of a mortgage loan amount to the appraised value
LTV
Revolving credit usage should be kept under what percent to avoid negative impact
30%
The percentage of assistance provided by the state agency
5%
A loan used to disburse payments to contractors which terminates when a home is complete
Construction loan
The original principal balance of the mortgage loan
Loan Amount
A ratio that compares monthly debt payments to gross monthly income
DTI
A bankruptcy remains on your credit this long
Chapter 7 = 10 years
Chapter 13 = 7 years
Time until DPA loan is forgiven
Not forgiven
FHA Loan
A percentage of the home's value paid at closing to lower the rate or the monthly payment
Down Payment
An insurance policy that protects lenders when a homeowner defaults
PMI
A collection remains on your credit this long
7 years from initial missed payment
The credit score required to receive assistance
660
A product that offers an initial fixed interest rate for a certain period, after which it adjusts based on market conditions
Adjustable Rate Mortgage (ARM)
Upfront fees associated with getting a mortgage
Closing costs
Five weighted categories that reflect credit risk
FICO
If this type of collection is less than $500 it will not be on your credit report
Medical
The annual salary cap to receive assistance
~$108,000 annually
A loan that allows homeowners to borrow against the equity in their home
Home Equity
This account holds the portion of the borrower's monthly payment that covers HOI and taxes
Escrow