An Assumable Loan is a type of mortgage loan that allows a new purchaser to undertake the existing loan's obligation without changing its terms. This process bypasses the need for obtaining a new mortgage arrangement.
Discount points are fees paid directly to the lender at the time of the loan origination to reduce the interest rate and lower monthly mortgage payments. Frequently used in conventional, FHA, and VA loans, they offer borrowers flexibility in managing loan costs.
An Energy Efficient Mortgage (EEM) is a mortgage loan designed to help homebuyers finance energy-efficient improvements to reduce future utility costs.
A Four-Plex is a type of residential building configuration that contains four separate dwelling units. It offers opportunities for both living in one unit and renting out the others or renting all four units for income.
A HECM (Home Equity Conversion Mortgage) is a type of reverse mortgage that allows homeowners aged 62 and older to convert part of the equity in their homes into cash without having to sell the home or making monthly mortgage payments.
Minimum Property Standards (MPS) are basic structural and safety requirements established for residential buildings constructed or financed under programs administered by the Department of Housing and Urban Development (HUD). These standards ensure that homes are safe, sanitary, and secure for occupants.
Mortgage insurance is a protection for the lender in the event of borrower default, covering a portion of the amount borrowed to mitigate risk.
Mortgage Insurance Premium (MIP) is a fee paid by a borrower to obtain mortgage insurance on a mortgage loan, which protects lenders against losses if the borrower defaults. This fee can be paid as a lump sum at the time of loan closing or as a periodic amount included in the monthly payments, or both.
