Quiz Time! Do you know these important mortgage acronyms?
Like many industries, the mortgage world has its fair share of initials and acronyms!
So, here’s a quick quiz on 8 mortgage acronyms to make sure you are up to speed.
1. USDA SFHGLP
2. FHA
3. FNMA
4. FHLMC
5. SHIP
6. MIP
7. PMI
8. VA
Answers:
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 appraised value is higher than the purchase price.
Metroplex Mortgage Services is proud USDA Approved Lender throughout Florida, Texas, Tennessee, and Alabama.
P.S – In order to make sure that you are working with a USDA Approved Lender, here is the direct link to access the USDA Approved Lender List.
2. FHA = Federal Housing Administration
Per HUD.gov, “The Federal Housing Administration (FHA) is part of the U.S. Department of Housing and Urban Development. We provide mortgage insurance on loans made by FHA-approved lenders. We insure mortgages on single family homes, multifamily properties, residential care facilities, and hospitals throughout the United States and its territories.”
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. More information on Fannie Mae’s history and loan products can be found at: FannieMae.com
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.
More information on Freddie Mac’s history and loan products can be found at: FreddieMac.com
5. SHIP = State Housing Initiatives Partnership Program
Per FloridaHousing.org, “Florida Housing administers the State Housing Initiatives Partnership program (SHIP), which provides funds to local governments as an incentive to create partnerships that produce and preserve affordable homeownership and multifamily housing. The program was designed to serve very low, low and moderate income families.”
My office has worked with SHIP Funds in various counties for over a decade! When available, they can be a great way to reduce your out-of-pocket expenses by providing down payment and closing cost assistance.
If you have Florida SHIP Funds Questions for a Florida First-Time Homebuyer, 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.
8. VA = U.S. Department of Veterans Affairs
Per VA.gov, it lists the following as “Main pillars of the VA home loan benefit”:
- No down payment required
- Competitively low interest rates
- Limited closing costs
- No need for Private Mortgage Insurance (PMI)
- The VA home loan is a lifetime benefit: you can use the guaranty multiple times
Metroplex Mortgage Services is a proud VA Approved Lender throughout Florida, Texas, Tennessee, and Alabama!
Thank you for your service!
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!
(800)806-9836 X280
SeanS@MPLX.org
