Glossary of Home Loan Terms: Conventional Loans, FHA, VA, and More, Quizzes of Real Estate Management

Download Glossary of Home Loan Terms: Conventional Loans, FHA, VA, and More and more Quizzes Real Estate Management in PDF only on Docsity! TERM 1 Alt A loan DEFINITION 1 A home loan for borrowers who fall short of qualify for a standard home loan TERM 2 Conforming conventional loan DEFINITION 2 A conventional loan that meets the standards required for purchase in the secondary market by Fannie Mae or Freddie Mac TERM 3 conventional mortgage loan DEFINITION 3 Mortgage loans that do not enjoy government backing in the form of FHA insurance or VA guarantee TERM 4 fannie mae DEFINITION 4 Government sponsored enterprise; one of the largest purchasers of residential mortgage in the secondary market TERM 5 federal housing administration (FHA) DEFINITION 5 A government sponsored housing finance agency that operates in the primary market by providing a default insurance program, as well as other housing programs and initiatives TERM 6 FHA mortgage insurance DEFINITION 6 Govn't sponsored mortgage insurance that protects lenders from any loss after foreclosure and conveyance of title of the property to the US department of housing and urban development. TERM 7 Freddie Mac DEFINITION 7 A Govn't sponsored enterprise and along with Frannie Mae, one of the largest purchasers of residential mortgages in the secondary market. TERM 8 Governmentt sponsored enterprise DEFINITION 8 a term that refers to Fannie Mae, Freddie Mac, and several other less important government entities created by acts of congress to promote an active secondary market for home mortgages TERM 9 Home equity loan DEFINITION 9 second mortgages, used to finance home improvements and other purchases, where homeowners and other purchases, where homeowners can borrow against the accumulated equity in the home TERM 10 Hybrid ARM DEFINITION 10 An adjustable rate mortgage loan that provides for an initial period of fixed interest charges, hence fixed payments, before the interest rate becomes adjustable.