Quiz Time! Do you know all of these mortgage acronyms?
Like many industries, the world of mortgages has its fair share of initials and acronyms.
So, here’s a quick quiz on 7 mortgage acronyms to make sure you are up to speed.
1. USDA SFHGLP
1. USDA SFHGLP = United States Department of Agriculture Single Family Housing Guaranteed Loan Program
This USDA program provides financing for homes in eligible rural areas and is known for its affordable financing that allows for:
- NO Down Payment,
- Credit flexibility, and
- Ability to finance in closing costs when the home’s appraised value is higher than the purchase price.
Metroplex Mortgage Services is proud to be the #1 Ranked USDA Approved Lender in Florida for 2017!
2. FHA = Federal Housing Administration
Federal Housing Administration, commonly referred to as FHA, offers financing that is known for its credit flexibility and minimum down payment of 3.5%.
3. FNMA = Federal National Mortgage Association “Fannie Mae”
Fannie Mae provides conventional financing for primary, secondary, and investment property borrowers.
4. FHLMC = Federal Home Loan Mortgage Corporation “Freddie Mac”
More popularly known as Freddie Mac, like Fannie Mae, they also provide conventional financing for primary, secondary, and investment property borrowers with different qualifying parameters than Fannie Mae such as more flexibility for properties located on private roads as one example.
5. SHIP = State Housing Initiatives Partnership Program
These funds provide local governments with an incentive to create partnerships that are designed to serve very low, low and moderate income families in Florida.
If you have SHIP Questions for a homebuyer in Florida, please reach out so we can be of service!
6. MIP = Mortgage Insurance Premium (FHA Loans)
Annual Mortgage Insurance Premium (MIP) for FHA loans is calculated on a monthly basis while the Upfront Mortgage Insurance Premium (UFMIP) is a separate cost that is permitted to be financed into the borrower’s loan amount.
7. PMI = Private Mortgage Insurance (Conventional Loans)
Private Mortgage Insurance (PMI) will be calculated on conventional loans when there is a down payment of less than 20% and while it may be in offered in different formats, it is commonly known as being paid monthly and included as part of the borrower’s monthly payment.
So how did you do on the quiz? Did any of these trip you up?
Remember, if you need help, that is what we are here for!
Just call or email to discuss your scenario and let us show you the “Metroplex” difference!
Qualifying for a home loan can be both difficult and overwhelming, but when you work with a lender that specializes and understands the loan process, it is a match that can open the door to home ownership.
For more immediate scenarios - click here to apply online for a mortgage today!
So, keep us in mind for your next pre-qualification or if you have a current transaction experiencing financing difficulty and need an expert opinion.
Whether it be USDA, FHA, Conventional or VA loans, just call or email to discuss your scenario and let us show you the "Metroplex" difference!
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