Loan Glossary

A mortgage insured by the Federal Housing Administration. FHA loans require as little as 3.5% down and allow credit scores as low as 580, making them popular with first-time buyers.

A mortgage with an interest rate that remains constant for the entire loan term. Monthly principal and interest payments never change, offering predictability and protection from rate increases.

The legal process by which a lender takes possession of a property after the borrower fails to make payments. The property is then sold to recover the outstanding loan balance.

The percentage of gross monthly income used for housing costs (mortgage principal, interest, taxes, and insurance — PITI). Most conventional loans prefer a front-end ratio under 28%.