Conventional

1. A conventional mortgage is a home loan that isn’t backed by a government agency, such as the FHA or VA. Conventional mortgages often meet the down payment and income requirements set by Fannie Mae and Freddie Mac, and they often conform to the loan limits set by the Federal Housing Finance Administration (FHFA).

FHA

1. An FHA loan is a mortgage issued by an FHA-approved lender and insured by the Federal Housing Administration (FHA). Designed for low-to-moderate-income borrowers, FHA loans require a lower minimum down payments and credit scores than many conventional loans.

VA

1. A VA loan is a mortgage loan available through a program established by the United States Department of Veterans Affairs (previously the Veterans Administration). The VA sets the qualifying standards, dictates the terms of the mortgages offered and guarantees a portion of the loan, but doesn’t actually offer the financing. VA home loans are provided by private lenders, such as banks and mortgage companies, instead.

Loan To Value: A measurement comparing the amount of your mortgage with the appraised value of the property.

Closing Costs: The fees paid at the closing of a real estate transaction.

Cash To Close: Funds needed to finalize a real estate purchase or refinance. Can include but is not limited to: Down payment, loan origination, insurance, interest, taxes, title and escrow fees.