Glossary of Mortgage Terms

The Section 504 Home Repair Program is a USDA program that gives very-low-income rural homeowners access to low-interest loans and grants so they can fix, improve, or make their homes safer.

Section 8 is a federal housing assistance program, officially called the Housing Choice Voucher Program, that helps low-income families, seniors, and people with disabilities afford safe rental housing in the private market.

A seller’s disclosure is a written document that requires a property seller to share known defects, past repairs, and material conditions of a home with potential buyers before closing.

Shadow inventory refers to homes that aren't listed for sale on the open market but could become available, including properties in foreclosure, bank-owned homes, and houses held back by sellers waiting for better conditions.

A short sale is a type of real estate deal in which a homeowner sells their home for less than what they owe on their mortgage, and the lender agrees to accept the lower amount.

A single-family home is a freestanding residential property built on its own lot, designed to house one household, with no shared walls, roof structures, or utilities connecting it to another dwelling.

The Secured Overnight Financing Rate (SOFR) is a standard interest rate that is set based on overnight rates. Lenders use U.S. Treasury repurchase agreements to set rates on adjustable-rate mortgages and other loans.

A spec house is a new home built by a builder or developer without a specific buyer in mind. It is meant to be sold on the open market based on current real estate demand and popular design trends.

Your local government uses a special assessment tax, which is an extra charge on your property tax bill, to pay for a specific neighborhood improvement, such as new roads or sewer lines.