Loan to Value and FHA Loans Flashcards
1
Q
Amendatory Clause
A
An FHA form the lender gives to the borrower that informs the borrower of the appraised value of the home being purchased
2
Q
Loan-to-Value Limits
A
Limits established by FHA that require the amount of any insured mortgage not exceed a certain percent of the appraised value of the property
3
Q
Loan-to-Value Ratio
A
The collateral risk the lender takes and, conversely, the equity the borrower risks losing
4
Q
Mortgage Insurance Premium
A
The premium charged for insuring an FHA loan
5
Q
Portfolio Lender
A
A bank or other institution that originates mortgage loans and are not sold in the secondary market
