FHA:

Federal Housing Administration, or FHA, is an agency of the Department of Housing and Urban Development, also known as HUD. The FHA insures qualified mortgages so that low-income households can have access to affordable mortgage loans.

REFINANCE:

  Repaying a mortgage with another mortgage which has a lower interest rate. Homeowners typically take advantage of turning their equity into cash.

PURCHASE MONEY MORTGAGE:

A home loan that a borrower obtains to buy property and uses the property as collateral for the loan.

FANNIE MAE:

  It is a congressionaly chartered shareholder owned company and the nation's highest supplier of home mortgage funds.\n\nSee further Fannie Mae's community home buyer's program

FREDDIE MAC:

A government agency that makes housing affordable to millions of families. This agency purchases residential mortgages, securitizes them, and sells them to investors; this provides lenders with funds for new homebuyers.

HOME EQUITY:

The part of a home's value that the mortgage borrower owns outright; the difference between the fair market value of the home and the principal balances of all mortgage loans.