Glossary of Mortgage Terms

A government-backed home loan from the Federal Housing Administration (FHA) is an adjustable-rate mortgage (ARM) that starts with a fixed interest rate and then changes every so often based on market indexes.

Before a lender will approve a loan, the Federal Housing Administration (FHA) requires an appraisal of the property. This appraisal finds out the home's market value and makes sure it meets minimum health, safety, and structural standards.

When you apply for an FHA loan, FHA compensating factors are good things about your finances that can help you qualify even if other parts of your application don't meet the minimum requirements.

An FHA loan is a government-backed mortgage that lets people with less-than-ideal credit buy a home with as little as 3.5% down.

An FHA refinance replaces your current mortgage with a new loan that is backed by the Federal Housing Administration. This gives homeowners a way to lower their monthly payments, change the terms of their loan, or get access to their home equity.

An FHA streamline refinance is a simple way for homeowners with an existing FHA loan to get a new mortgage with a lower interest rate. This can often be done without an appraisal or proof of income.

An FHA-approved condo is a condo unit or project that meets the Federal Housing Administration's safety, financial, and legal standards. This means that it can get FHA-insured mortgage financing.

A first-lien HELOC is a home equity line of credit that takes the place of your main mortgage. It lets you borrow money against your home equity in the first lien position.

A fixture in real estate is a piece of personal property that is permanently attached to a home or piece of land and goes with the property when it is sold.

Foreclosure is a legal process in which a mortgage lender takes ownership of a property after the borrower fails to make the required loan payments. This usually means that the home is sold at public auction.