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| Loans used for credit-deficient borrowers |
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| credit rating where the FICO score is 660 or above. There have been no late mortgage payments within a 12 month period. This is the best credit rating to have when entering a new loan. |
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| Documents recording the ownership of property throughout time. Acceleration: The right of the lender to demand payment on the outstanding balance of a loan. Acceptance: The written approval of the buyers offer by the seller. |
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| The use of a building, structure, or land that is subordinate to, customarily incidental to, and ordinarily found in association with, the principal use it serves. |
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| 43,560 square feet (about the size of a football field) |
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Term
| Active Partners Performance System (APPS) |
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Definition
| Software program that allows HUD's business partners to submit their Previous Participation Certification (form 2530) request to HUD for processing via the Internet. |
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Term
| Additional Principal Payment |
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Definition
| Money paid to the lender in addition to the established payment amount used directly against the loan principal to shorten the length of the loan. |
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| The actual date that the interest rate is changed for an ARM. |
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Definition
| The published market index used to calculate the interest rate of an ARM at the time of origination or adjustment. |
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Definition
| The time between the interest rate change and the monthly payment for an ARM. The interval is usually every one, three, or five years depending on the index. |
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Term
| Adjustable Rate Mortgage (ARM) |
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Definition
| A mortgage with an interest rate that increases or decreases over the life of the loan. A transaction secured by real property or a dwelling for which the annual percentage rate may increase after consummation. |
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Definition
| A signed, sworn statement made by the buyer or seller regarding the truth of information provided |
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Term
| Affiliated Business Arangements |
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Definition
| As long as the affiliation is disclosed, affiliated business arrangements are, perhaps surprisingly, not kickback schemes. To qualify as an affiliated business arrangement, and affiliated business must be controlled by and fall under the "parent" business. |
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Definition
| The relationship among business entities where one entity has effective control over the other by virtue of a partnership or other agreement or is under common control with the other by a third entity or where an entity is a corporation related to another corporation as parent to subsidiary by an identity of stock ownership |
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Term
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Definition
| Housing for which the occupant(s) is/are paying no more than 30 percent of his or her income for gross housing costs, including utilities. Please note that some jurisdictions may define affordable housing based on other, locally determined criteria, and that this definition is intended solely as an approximate guideline or general rule of thumb. |
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Term
| Affordable Housing Program (AHP) |
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Definition
| A competitive program of the Federal Home Loan Bank (FHL Banks) system that provides grants twice a year through financial institutions for investment in low-or moderate- income housing initiatives. The program is flexible, so that AHP funds can be used in combination with other programs and funding sources, thus promoting a project's feasibility. |
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Definition
| These loans are also known as alternative documentation loans because they are primarily used when borrowers with good credit have trouble meeting traditional documentation requirements. |
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| A feature of the home or property that serves as a benefit to the buyer but that is not necessary to its use; may be natural (like location, woods, water) or man-made (like a swimming pool or garden) |
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Term
| American Community Survey (ACS) |
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Definition
| A nationwide survey designed to provide communities with a fresh look at how they are changing. It is a critical element in the Census Bureau's re-engineered 2010 census plan. The ACS collects information such as age, race, income, commute time to work, home value, veteran status, and other important date from U.S. households. |
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Definition
| The total amount of outstanding principal is reduced by regular payments. If fully amortized, regular payments will result in zero loan balance at the end of the loan term. |
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Term
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Definition
| A loan in which payment of the periodic payments does not result in an increase in the principal balance under the terms of the legal obligation. |
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Term
| Annual Mortgage Statement |
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Definition
| Yearly statement to borrowers detailing the remaining principal and amounts paid for taxes and interest. |
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Term
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Definition
| A measure of the cost of credit, expressed as a yearly rate, which correlates the amount and timing of value received by the consumer to the amount and timing of payments made. |
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Term
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| An item of value such as cash on hand checking or savings account, stock, bond, cash value of insurance policy, equity and real estate, retirement fund, automobile, and personal property |
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Term
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Definition
| When a home is sold, the seller may be able to transfer the mortgage to the new buyer. This means the mortgage is assumable. Lenders generally require a credit review of the new borrower and may charge a fee for the assumption. Some mortgages contain a due-on-sale clause, which means that the mortgage may not be transferable to a new buyer. Instead, the lender may make you pay the entire balance that is due when you sell the home. An assumable mortgage can help you attract buyers if you sell your home. |
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Definition
| A provision in the terms of a loan that allows the buyer to take legal responsibility for the mortgage from the seller. |
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| Determining the cost of a home by totaling the cost of all houses sold in one area and dividing by the number of homes sold |
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Term
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Definition
| An annual percentage rate that is derived from average interest rates, points, and other loan pricing terms currently offered to consumers by a representative sample of creditors for mortgage transactions that have low-risk pricing characteristics. |
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