Affordable housing refers to various public- and private-sector initiatives aimed at helping low- and moderate-income individuals and families purchase homes. These programs often feature lower down payments, eased loan-qualifying rules, and below-market interest rates.
The Federal Home Loan Bank System (FHLBank System) is federally created to ensure liquidity for qualified thrift lenders, aiming to support housing finance and community development.
The Federal Home Loan Mortgage Corporation (FHLMC), commonly known as Freddie Mac, is a government-sponsored enterprise (GSE) that helps provide liquidity, stability, and affordability to the mortgage market in the United States.
The FHA 203(b) program provides mortgage insurance to lenders to protect against borrower default and is commonly used to finance the purchase of new or existing one- to four-family housing.
The Federal Home Loan Bank System (FHLB) is a group of regional banks across the United States that provide financial products and services to help local lenders provide housing finance, economic development, and community investment.
First-Time Home Buyers are individuals or households entering the real estate market to purchase a home for the first time or after an extended period of renting. Various programs and incentives often exist to assist these buyers, particularly those who meet specific criteria such as income limits.
Freddie Mac is a government-sponsored entity that purchases residential mortgage loans in the secondary market to provide liquidity, stability, and affordability to the U.S. housing market.
The Government National Mortgage Association (Ginnie Mae or GNMA) is a U.S. government corporation within the Department of Housing and Urban Development (HUD) that guarantees timely payments of principal and interest on mortgage-backed securities (MBS) to investors.
A quasi-governmental organization that is privately owned but was created by the government and retains certain privileges not afforded to entirely private entities.
Tax-exempt securities issued by municipal and state authorities to support low-interest rate mortgage loans for qualified individuals, typically first-time home buyers.
A loan typically used outside the United States, whose payments are adjusted according to the rate of inflation, making payments predictable in terms of real value.
The secondary mortgage market involves mechanisms for buying and selling residential first mortgages. It enables lenders to sell mortgages and transfer the associated debt, thereby improving liquidity and fostering a more stable housing finance market.
