Mortage Basics
This is the minimum percentage of a home's value a buyer typically pays upfront?
What is a down Payment?
This loan program is specifically for U.S. military veterans and their families.
What is a VA loan?
The number of years in a standard fixed-rate mortgage term.
What is 30 years?
The minimum fico score for an FHA loan.
What is 580?
First-time homebuyers often use this loan program with as little a 3.5% down payment.
What is a FHA loan?
This type of loan is backed by the Federal Housing Administration.
What is an FHA loan?
This type of loan is commonly used for rural properties and is backed by the U.S, Department of Agriculture
What is a USDA loan?
This is the cost paid annually as a percentage of the loan amount for borrower insurance.
What is private mortgage insurance. (PMI)
This is the percentage of monthly income that lenders use to evaluate a borrower's ability to repay a loan.
What is debt to income ratio? (DTI)
This program helps qualified buyers purchase homes with no down payment.
What is a USDA or VA loan?
This is the term for a mortgage where the interest rate stays the same for it's entirety.
What is a fixed rate mortgage?
This jumbo loan feature differentiates it form conforming loans.
What is exceeding conforming loan limits?
This document officially transfers ownership of a property.
What is a deed?
This term refers to a loan for more than 80% of the homes value.
What is a high loan-to-value loan. (LTV)
This term refers to financial aid that doesn't need to be repaid, often for down payments.
What is a grant?
This type of mortgage adjusts its interest rate after an initial fixed period.
What is an adjustable-rate mortgage? ARM
This type of mortgage allows homeowners age 62 or older to access their home equity
What is a reverse mortgage?
This fee is charged by lenders for processing a loan application
What is a origination fee?
These are the 3 main credit bureaus used in mortgage approval.
What are Experian, Transunion, and Equifax?
This state-sponsored program often offers reduced interest rates or assistance for first time homebuyers.
What are state housing finance (HFA) programs?
This is the process lenders use to verify a borrowers ability to repay a loan.
What is underwriting?
These loans are designed for those who may not qualify for traditional financing.
What are non-conforming loans?
The term for paying off a loan over time in regular installments
What is amortization?
This type of pre-approval involves verifying income, credit, and assets before house hunting.
What is a fully underwritten pre-approval?
The maximum income threshold for many down payment assistance programs is tied to this.
What is area median income?