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Construction and Bridge Loans - Need a loan for building a custom home?

Debt Consolidation - Lower your monthly payments.

FHA & VA Loans - Want more information on government loans?

First Time Buyers - First time buying? We have a program for you!

Refinance - Planning to refinance your home loan?

Purchase Loans - Looking forward to purchasing a home?

Second Mortgages - Need to pull out another mortgage?

No Down Payment - Put zero down on a home.


100% Financing Loan - No down payment for borrowers with good credit.

Adjustable Rate Mortgages (ARM) - About ARM interest rates fluctuating

Balloon Mortgages - Allows low monthly payments and interest rates.

Fixed Rate Mortgages - Lock into a guaranteed rate.

Full Doc and Stated Income - This type of loan usually offers low rates.

Introductory Rate ARMs - More information on ARMs.

Reverse Mortgages - This converts equity into cash.

Types of Standard ARMs


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Mortgage Glossary

Acceleration - Typically associated with overdue payments or failure to perform as promised under a mortgage contract. The lender would then request or demand early payments or the entire payment of the mortgage.

Adjustable Rate Mortgage (ARM) - An ARM is different from a traditional fixed rate mortgage since the interest rate fluctuates during the lifespan of the loan in conjunction with movements in the index rate.

Amortization - This is the length of time it takes to pay a loan off.

Annual Percentage Rate (APR) - This states the total annual cost of a mortgage expressed by the actual rate of interest paid.

Appraisal - This is the process to determine the market value of a property.

Appraiser - This is a person qualified by education, training, and experience to estimate the value of real property and personal property.

Appreciation - This is an increase in the value of a property due to changes in market conditions or other causes. The opposite of depreciation.

Asset - This is anything of monetary value that is owned by a person. The assets include real property, personal property, and enforceable claims against others including bank accounts, stocks, mutual funds, etc..

Assumable Mortgage - If there is a house that is sold with an assumable mortgage, that means the buyer gets the house and takes over the terms of the loan. The buyer can assume the terms without being qualified or the loan can be a Qualifying Assumable Loan--while the buyer may take over the terms of the mortgage, they must be qualified as if they were applying for a brand new loan.

Assumption - This is the transfer of the seller's existing mortgage to the buyer.

Assumption Clause - This is a provision in an assumable mortgage that allows a buyer to assume responsibility for the mortgage from the seller. This loan does not need to be paid in full by the original borrower upon sale or transfer of the property.

Assumption Fee - This is the fee paid to a lender (usually by the purchaser of real property) resulting from the assumption of an existing mortgage.

Balance Sheet - This is a financial statement that shows assets, liabilities, and net worth as of a specific date.

Balloon Mortgage - This is where the remaining balance must be paid in full at the end of a pre-set term.

Bankrupt - This is a person, firm, or corporation that, through a court proceeding, is relieved from the payment of all debts after the
surrender of all assets to a court-appointed trustee.

Beneficiary - This is a person designated to receive the income from a trust, estate, or a deed of trust.

Biweekly Payment Mortgage - This is a mortgage that requires payments to reduce the debt every two weeks instead of the standard monthly payment schedule. The 26 or possibly 27 biweekly payments are each equal to one-half of the monthly payment that would be required if the loan were a standard 30-year fixed-rate mortgage, and they are usually drafted from the borrower's bank account. The result for the borrower is a substantial savings in interest.

Bond - This is an interest-bearing certificate of debt with a maturity date. This is an obligation of a government or business corporation. A real estate bond is a written obligation usually secured by a mortgage or a deed of trust.

Breach - This is a violation of any legal obligation.

Bridge Loan - This is a form of second trust that is collateralized by the borrower's present home, which is usually for sale, in a manner that allows the proceeds to be used for closing on a new house before the present home is sold. This is also known as a "swing loan."

Broker - This is a person who, for a commission or a fee, brings parties together and assists in negotiating contracts between them.

Buydown Mortgage - The temporary buydown is a mortgage on which an initial lump sum payment is made by any party to reduce a borrower's monthly payments during the first few years of a mortgage. A permanent buydown reduces the interest rate over the entire life of a mortgage.

Call Option - This is a provision in the mortgage that gives the mortgagee the right to call the mortgage due and payable at the end of a specified period for any reason.

Cap - This is a provision of an adjustable-rate mortgage (ARM) that limits how much the interest rate or mortgage payments may increase or decrease.

Capital Improvement - This is any structure or component erected as a permanent improvement to real property that adds to its value and useful life.

Cash-Out Refinance - This is a refinance transaction in which the amount of money received from the new loan exceeds the total of the money needed to repay the existing first mortgage, closing costs, points, and the amount required to satisfy any outstanding subordinate mortgage liens. Otherwise a refinance transaction in which the borrower receives additional cash that can be used for any purpose.

Certificate of Eligibility - This is a document issued by the federal government certifying a veteran's eligibility for a Department of Veterans Affairs (VA) mortgage.

Certificate of Reasonable Value (CRV) - This is a document issued by the Department of Veterans Affairs (VA) that establishes the maximum value and loan amount for a VA mortgage.

Certificate of Title - This is a statement provided by an abstract company, title company, or attorney stating that the title to real estate is legally held by the current owner.

Chain of Title - This is the history of all of the documents that transfer the title to a parcel of real property, starting with the earliest existing document and ending with the most recent.

Change Frequency - This is the frequency (in months) of payment and/or interest rate changes in an adjustable-rate mortgage (ARM).

Clear Title - This is a title that is free of liens or legal questions as to ownership of the property.

Closing - This is a meeting at which a sale of a property is finalized by the buyer signing the mortgage documents and paying closing costs. This is also called "settlement."

Closing Cost Item - This is a fee or amount that a home buyer must pay at closing for a single service, tax, or product. The closing costs are made up of individual closing cost items such as origination fees and attorney's fees. Many of the closing cost items are included as numbered items on the HUD-1 statement. There are also expenses (over and above the price of the property) incurred by buyers and sellers in transferring ownership of a property. The closing costs normally include an origination fee, an attorney's fee, taxes, an amount placed in escrow, and charges for obtaining title insurance and a survey. The closing costs percentage will vary according to the area of the country.

Closing Statement - This is also referred to as the HUD-1 which is the final statement of costs incurred to close on a loan or to purchase a home.

Cloud on Title - These are any conditions revealed by a title search that adversely affect the title to the real estate. Typically clouds on title cannot be removed except by a quitclaim deed, release, or court action.

Collateral - This is an asset such as a car or a home, that guarantees the repayment of a loan. The borrower risks losing the asset if the loan is not repaid according to the terms of the loan contract.

Collection - These are efforts used to bring a delinquent mortgage up to date and to file the necessary notices to proceed with foreclosure when necessary.

Combination Loan - With this type of loan, a person receives a first mortgage for 80% of the loan amount, and a second mortgage at the same time for the remainder of the balance. If avoiding PMI (mortgage insurance) is important, consider combination loans--known as 80/10/10 loans or 80/20's.

Combined Loan-to-Value (CLTV) - This is the unpaid principal balances of all the mortgages on a property (usually first and second) divided by the property's appraised value.

Co-Maker - This is a person who signs a promissory note along with the borrower. The co-maker's signature guarantees that the loan will be repaid since the borrower and the co-maker are equally responsible for the repayment. Also see endorser.

Commission - This is the fee charged by a broker or agent for negotiating a real estate or loan transaction. The commission is generally a percentage of the price of the property or loan.

Commitment letter - This is a formal offer by a lender stating the terms under which it agrees to lend money to a home buyer. This also known as a "loan commitment."

Common Areas - These are portions of a building, land, and amenities owned or managed by a planned unit development (PUD) or condominium project's homeowners' association or a cooperative project's cooperative corporation that are used by all of the unit owners, who share in the common expenses of their operation and maintenance. These common areas include swimming pools, tennis courts, and other recreational facilities, as well as common corridors of buildings, parking areas, means of ingress and egress, etc.

Community Home Improvement Mortgage Loan - This is an alternative financing option that allows low and moderate income home buyers to obtain 95% financing for the purchase and improvement of a home in need of modest repairs. This repair work can account for as much as 30% of the appraised value.

Community Property - In some western and southwestern states, community property is a form of ownership under which property acquired during a marriage is presumed to be owned jointly unless acquired as separate property of either spouse.

Comparables - This is an abbreviation for "comparable properties" which is used for comparative purposes in the appraisal process. Comparables are properties like the property under consideration. They reasonably have the same size, location , and amenities and have recently been sold. Comparables help the appraiser determine the approximate fair market value of the subject property.

Condominium - This is a real estate project in which each unit owner has title to a unit in a building, an undivided interest in the common areas of the project, and sometimes the exclusive use of certain limited common areas.

Condominium Conversion - This is the changing of the ownership of an existing building (usually a rental project) to the condominium form of ownership.

Conforming Loan - The current conforming loan limit is $417,000 and below. The conforming loan limit change annually.

Construction Loan - This is a short-term, interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses.

Consumer Reporting Agency (or Bureau) - This is an organization that prepares reports that are used by lenders to determine a potential borrower's credit history. The agency obtains data for these reports from a credit repository and from other sources.

Contingency - This is a condition that must be met before a contract is legally binding. For instance, home purchasers often include a contingency that specifies that the contract is not binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector.

Contract - This is an oral or written agreement to do or not to do a certain thing.

Conventional Mortgage - This is a mortgage that is not insured or guaranteed by the federal government.

Convertibility Clause - This is a provision in some adjustable-rate mortgages (ARMs) that allow the borrower to change the ARM to a fixed-rate mortgage at specific timeframes after loan origination.

Convertible ARM - This is an adjustable-rate mortgage (ARM) that can be converted to a fixed-rate mortgage under specific conditions.

Cooperative (Co-op) - This is a type of multiple ownership in which the residents of a multiunit housing complex own shares in the cooperative corporation that own the property, giving each resident the right to occupy a specific apartment or unit.

Corporate Relocation - These are arrangements under which an employer moves an employee to another area as part of the employer's normal course of business or under which it transfers a substantial part or all of its operations and employees to another area since it is relocating its headquarters or expanding its office capacity.

Cost of Funds Index (COFI) - This is an index that is used to determine interest rate changes for certain ARM plans. This represents the weighted-average cost of savings, borrowings, and advances of the 11th District members of the Federal Home Loan Bank of San Francisco.

Covenant - This is a clause in a mortgage that obligates or restricts the borrower and that, if violated, can result in foreclosure.

Credit - This is an agreement in which a borrower receives something of value in exchange for a promise to repay the lender at a later date.

Credit History - This is a record of an individual's open and fully repaid debts. Credit history helps a lender to determine whether a potential borrower has a history of repaying debts in a timely manner.

Credit Report - This is a report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's credit worthiness.

Credit Repository - This is an organization that gathers, records, updates, and stores financial and public records information about the payment records of individuals who are being considered for credit.

Debt - This is an amount owed to another.

Deed - This is the legal document conveying the title to a property.

Deed-in-Lieu - This is a deed given by a mortgagor to the mortgagee to satisfy a debt and avoid foreclosure.

Deed of Trust - This is a document used in some states instead of a mortgage. The title is conveyed to a trustee.

Default - This is the failure to make mortgage payments on a timely basis or to comply with other requirements of a mortgage.

Delinquency - This is the failure to make mortgage payments when mortgage payments are due.

Deposit - This is a sum of money given to bind the sale of real estate, or a sum of money given to ensure payment or an advance of funds in the processing of a loan.

Depreciation - This is a decline in the value of property; the opposite of appreciation.

Down payment - This is the part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.

Due-on-Sale Provision - This is a provision in a mortgage that allows the lender to demand full repayment if the borrower sells the property that serves as security for the mortgage.

Earnest Money Deposit - This is a deposit made by the potential home buyer to show that they're serious about buying the house.

Easement - This is a right of way giving persons other than the owner access to or over a property.

Effective Age - This is an appraiser's estimate of the physical condition of a building. The actual age of a building may be shorter or longer than the effective age.

Effective Gross Income - This is the normal annual income including overtime that is regular or guaranteed. This income may be from more than one source. The salary is generally the principal source, but other income may qualify if it is significant and stable.

Encumbrance - This is anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or restrictions.

Endorser - This is a person who signs ownership interest over to another party. Contrast with co-maker.

Equal Credit Opportunity Act (ECOA) - This is a federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.

Equity - This is a homeowner's financial interest in a property. The equity is the difference between the fair market value of the property and the amount still owed on the mortgage.

Escrow - This is an item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For instance, the deposit by a borrower with the lender of funds to pay taxes and insurance premiums when they are due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closing of a sale of real estate.

Escrow Account - This is an account in which a mortgage servicer holds the borrower's escrow payments prior to paying property expenses.

Escrow Analysis - This is the periodic examination of escrow accounts to determine if current monthly deposits will provide sufficient funds to pay taxes, insurance, and other bills when they are due.

Escrow Collections - These are the funds collected by the servicer and set aside in an escrow account to pay the borrower's property taxes, mortgage insurance, and hazard insurance.

Escrow Disbursements - This is the use of escrow funds to pay real estate taxes, hazard insurance, mortgage insurance, and other property expenses as they become due.

Escrow Payment - This is the portion of a mortgagor's monthly payment that is held by the servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. This is also known as "impounds" or "reserves" in some states.

Estate - This is the ownership interest of an individual in real property. The total sum of all the real property and personal property owned by an individual at the time of death.

Eviction - This is the lawful expulsion of an occupant from real property.

Examination of Title - This is the report on the title of a property from the public records or an abstract of the title.

Fair Credit Reporting Act - This is a consumer protection law that regulates the disclosure of consumer credit reports by consumer/credit reporting agencies and establishes procedures for correcting mistakes on a person's credit record.

Fair Market Value - This is the highest price that a buyer, willing but not compelled to buy, would pay. This is also the lowest a seller, willing but not compelled to sell, would accept.

Fannie Mae - Fannie Mae is a congressionally chartered, shareholder-owned company that is the nation's largest supplier of home mortgage funds. Fannie Mae's Community Home Buyer's Program is an income-based community lending model, under which mortgage insurers and Fannie Mae offer flexible underwriting guidelines to increase a low or moderate income family's buying power and to decrease the total amount of cash required to purchase a home. Borrowers who participate in the model are required to attend pre-purchase home-buyer education sessions.

Federal Housing Administration (FHA) - This is an agency of the U.S. Department of Housing and Urban Development (HUD). Their main activity is the insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction and underwriting however, it does not lend money or plan or construct housing.

Fee Simple - This is the greatest possible interest a person can have in real estate.

FHA mortgage - This is a mortgage that is insured by the Federal Housing Administration (FHA). It is also known as a government mortgage.

Finder's Fee - This is a fee or commission paid to a mortgage broker for finding a mortgage loan for a prospective borrower.

First Adjustment - This is when a person can expect the first rate adjustment in your ARM loan.

First Mortgage - This is a mortgage that is the primary lien against a property.

Fixed-Rate Mortgage (FRM) - This is a mortgage in which the interest rate does not change during the entire term of the loan.

Flood Insurance - The insurance that compensates for physical property damage resulting from flooding. This is required for properties located in federally designated flood areas.

Foreclosure - This is the legal process by which a borrower in default under a mortgage is deprived of their interest in the mortgaged property. This typically involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.

Fully Amortized ARM - This is an ARM with a monthly payment that is sufficient to amortize the remaining balance, at the interest accrual rate, over the amortization term.

Good Faith Estimate - This is an estimate of charges in which a borrower is likely to incur in connection with a settlement.

Hazard Insurance - This is insurance protection against loss to real estate caused by fire, some natural causes, vandalism, etc. This depends on the terms of the policy.

Home Equity Line of Credit - This is a credit line that is secured by a second deed of trust on a house. The equity lines of credit are revolving accounts that work like a credit card, which can be paid down or charged up for the term of the loan. The minimum payment due each month is the interest only.

Home Equity Loan - This is a loan secured by a second deed of trust on a house which is usually used as a home improvement loan.

Housing Ratio - This is the ratio of the monthly housing payment in total (PITI - Principal, Interest, Taxes, and Insurance) divided by the gross monthly income. This ratio is in some cases referred to as the top ratio or front end ratio.

HUD - The HUD is the U.S. Department of Housing and Urban Development.

Index - This is a published interest rate to which the interest rate on an ARM is tied. Some of the commonly used indices include the 1 Year Treasury Bill, 6 Month LIBOR, and the 11th District Cost of Funds (COFI).

Impound Account - The impound account is an account established by the lender to pay a borrower's tax and insurance expenses. The borrower's monthly mortgage payment is increased to cover these costs while the additional amount being held in the impound account and then disbursed by the lender when the payments are due. Lenders usually prefer this arrangement since it reduces the possibility of a lapse in tax or insurance payments that could diminish the value of the lender's investment (the house). While it is often possible to opt out of an impound account, it will result in additional charges.

Interest - An only loan option. The loan payments have two components which are principal and interest. The interest-only loan has no principal component for a specific period of time. These special loans minimize monthly payments by eliminating the need to pay down your balance during the interest-only period, giving greater cash flow control and/or increased purchasing power.

Jumbo Mortgage - The current loan limit for a conforming loan is $359,650. Loan amounts of $359,651 and above are considered non-conforming or jumbo mortgages and are often subject to higher pricing.

Lien - This is an encumbrance against the property for money due. This can be either voluntary or involuntary.

Lender - The lender is the bank, mortgage company, or mortgage broker offering the loan.

LIBOR - LIBOR stands for London Inter-Bank Offered Rate. This is a favorable interest rate offered for U.S. dollar deposits between a group of London banks. There are many different LIBOR rates, defined by the maturity of their deposit. The LIBOR is an international index that follows world economic conditions. The LIBOR-indexed ARMs offer borrowers aggressive initial rates and have proven to be competitive with popular ARM indexes like the Treasury bill.

Lifetime Cap - This is a provision of an ARM that limits the highest rate that can occur over the lifetime of the loan.

Loan to Value Ratio (LTV) - This is the unpaid principal balance of the mortgage on a property divided by the property's appraised value. The LTV will affect programs available to the borrower and usually, the lower the LTV the more favorable the terms of the programs that are offered by lenders.

Lock Period - This is the amount of time that a lender will guarantee a loan's interest rate. Once a person gets locked in on the interest rate on a loan, the lender will guarantee that rate for a specific period of time. This is usually for 30, 45 or 60 days.

Lock-In - This is a written agreement guaranteeing the home buyer a specified interest rate as long as the loan is closed within a set period of time. Often the lock-in also specifies the number of points to be paid at closing.

Margin - This is the number of percentage points a lender adds to the index value to calculate the ARM interest rate at each adjustment period.

Mortgage - This is a legal document that pledges a property to the lender as security for payment of a debt.

Mortgage Disability Insurance - This is a disability insurance policy which will pay the monthly mortgage payment in the event of a covered disability of an insured borrower for a specific period of time.

Mortgage Insurance (MI) - This is insurance written by an independent mortgage insurance company that protects the mortgage lender against loss incurred by a mortgage default. This is usually required for loans with an LTV of 80.01% or higher.

Mortgagee - This is the person or company who receives the mortgage as a pledge for repayment of the loan. This is also the mortgage lender.

Mortgagor - This the mortgage borrower who provides the mortgage as a pledge to repay.

Non-Conforming Loan - This is also referred to as a jumbo loan. Conventional home mortgages are not eligible for sale and delivery to some insurers due to various reasons, including the loan amount, loan characteristics or underwriting guidelines. Non-conforming loans usually incur at a rate and have origination fee premium.

Note - This is a written agreement containing a promise of the signer to pay a named person, or order, or bearer, a certain sum of money at a specified date or on demand.

Origination Fee - This is a fee imposed by a lender to cover certain processing costs in connection with making a real estate loan. This is usually a percentage of the amount loaned, such as one percent.

Owner Financing - This is the property purchase transaction in which the seller of the property provides all or part of the financing.

Periodic Cap - This is the maximum rate of increase for a specific period for a specific loan. This is ARM only.

PITI - This is the principal, interest, taxes and insurance--the components of a monthly mortgage payment.

Planned Unit Developments (PUD) - This is a subdivision of five or more individually owned lots with one or more other parcels owned in common or with reciprocal rights in one or more other parcels.

Points - These are the charges levied by the mortgage lender which usually is payable at closing. One point represents 1% of the face value of the mortgage loan.

Prepaid - The expenses of the property which are paid in advance of their due date which will usually be prorated upon sale, such as taxes, insurance, rent, etc.

Prepayment Penalty - This is a charge imposed by a mortgage lender on a borrower who wants to pay off part or all of the mortgage loan in advance of the schedule.

Principal - This is the amount of debt which does not include interest. This is the face value of a note or mortgage.

Private Mortgage Insurance (PMI) - This is the insurance provided by non-government insurers that protect lenders against loss if a borrower defaults. Some insurers require private mortgage insurance for loans with loan-to-value (LTV) percentages greater than 80%.

Qualifying Ratios - This is the ratio of your fixed monthly expenses to your gross monthly income. This is used to determine how much you can afford to borrow. The fixed monthly expenses would include PITI along with other obligations such as student loans, car loans, or credit card payments.

Rate - This is the annual rate of interest on a loan which is expressed as a percentage of 100.

Rate Cap - This is a limit on how much the interest rate can change. It is either at each adjustment period or over the lifetime of the loan.

Rate Lock-in - This is a written agreement in which the lender guarantees the borrower a specified interest rate as long as the loan closes within a set period of time.

Realtor - A realtor is a member of the National Association of Realtors. Not all real estate agents are realtors since it is a trademark.

Rebate - A rebate is compensation received from a wholesale lender which can be used to cover closing costs or as a refund to the borrower. Loans with rebates usually carry higher interest rates compared to loans with "points".

Refinancing - This is the process of paying off one loan with the proceeds from a new loan by using the same property as security.

Residential Mortgage Credit Report (RMCR) - This is a report that is requested by your lender that utilizes information from at least two of the three national credit bureaus and the information provided on your loan application.

Sales Contract - This is a written agreement to sell or purchase a home. This agreement is signed by both the seller and buyer.

Second Mortgage - A second mortgage assumes a subordinate position behind the first mortgage.

Seller - A seller is the person transferring ownership and all the rights for your home in exchange for cash or trade.

Seller Carry Back - An agreement in where the owner of a property provides financing. This is often in combination with an assumed mortgage.

Stated/Documented Income - Some loan products require that only applicants "state" the source of their income without needing to provide supporting documentation such as tax returns.

Sub-Prime Loans - Sub-prime loans are provided for those with less than good or prime credit.

Subordination - If you are refinancing your first mortgage and have an existing second or home equity line, an option you can choose is to "subordinate" the second mortgage. This is a request for your second mortgage holder to go back into the second lien position when you replace your existing first mortgage with the new refinancing loan.

Survey - A print showing the measurements of the boundaries of a parcel of land. These measurements go together with the location of all improvements on the land and some cases its area and topography.

Tenants-in-Common - The undivided interest in property taken by two or more persons. The interest does not need to be equal. Upon the death of one or more persons, there is no right of survivorship.

Term - The period of time which covers the lifetime of the loan. For instance, a 20 year fixed loan has a term of 20 years.

Title - The evidence a person has a right to possession of land.

Title Insurance - Insurance against loss resulting from defects of title to a specifically described parcel of real property.

Title Search - This an investigation into the history of ownership of a property to check for liens, unpaid claims, restrictions or problems, to verify that the seller can transfer free and clear ownership.

Total Debt Ratio - The monthly debt and housing payments divided by gross monthly income. This is also known as the Obligations-to-Income Ratio or Back-End Ratio.

Truth-in-Lending Act - A federal law requiring a disclosure of credit terms using a standard format. This is intended to facilitate comparisons between the lending terms of different financial organizations.

Verification of Deposit - A VOD is a form mailed to a bank or credit union that requests the institution to verify that the borrower's bank account exists.

Veterans Administration (VA) - A government agency guaranteeing mortgage loans with no down payment to veterans that are qualified.

Wrap-Around Mortgage - This is a method of financing where the borrower pays the former owner of the property each month in the form of a mortgage payment.