Conventional: A feature of real property, whether natural or man-made, that enhances its attractiveness and increases the occupant or user’s satisfaction, although the feature is not essential to the property’s use (such as a scenic view or recreational facility. FHA: USDA: VA:
Fairway: Freddie Mac Settlement Date
Freddie Mac considers the Settlement Date the date on which Freddie Mac disburses payment to the Lender to purchase a Mortgage. Because Freddie Mac considers the Settlement Date the date they purchase the loan, Credit Policy publishes the effective “Settlement Date” in Knowledge Owl 30 days prior to Freddie Mac’s deadline to ensure proper loan delivery to Freddie Mac.
FHA: Family Member
Family Member is defined as follows, regardless of actual or perceived sexual orientation, gender identity, or legal marital status: •child, parent, or grandparent; ◦a child is defined as a son, stepson, daughter, or stepdaughter; ◦a parent or grandparent includes a step-parent/grandparent or foster parent/grandparent; •spouse or domestic partner; •legally adopted son or daughter, including a child who is placed with the Borrower by an authorized agency for legal adoption; •foster child; •brother, stepbrother; •sister, stepsister; •uncle; •aunt; or •son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law of the Borrower.
FHA: Business Relationship
Business Relationship refers to an association between individuals or companies entered into for commercial purposes.
FHA: Data Plates
Data Plate refers to a paper document located on the interior of the Property that contains specific information about the unit and its manufacturer.
FHA: Existing Construction
Existing Construction refers to a Property that has been 100 percent complete for over one year or has been completed for less than one year and was previously occupied.
FHA: Existing Construction for Manufactured Housing
Existing Construction for Manufactured Housing refers to a Manufactured Home that has been permanently installed on a site for one year or more prior to the case number assignment date.
FHA: Existing Less Than One Year Old Construction
Existing Less Than One Year Old Construction refers to a Property that is 100 percent complete and has been completed less than one year from the date of the issuance of the CO or equivalent. The Property must have never been occupied. FHA treats the sale of an occupied Property that has been completed less than one year from the issuance of the CO or equivalent as an existing Property.
FHA: HUD Certification Label
HUD Certification Label, also known as a HUD seal or HUD tag, refers to a two inch by four inch aluminum plate permanently attached to Manufactured Housing.
FHA: HUD-approved Nonprofit
A HUD-approved Nonprofit is a nonprofit agency approved by HUD to act as a mortgagor using FHA mortgage insurance, purchase the Department’s Real Estate Owned (REO) Properties (HUD Homes) at a discount, and provide secondary financing. HUD-approved Nonprofits appear on the HUD Nonprofit Roster.
FHA: Interested Party Contribution
Interested Parties refer to sellers, real estate agents, builders, developers, Mortgagees, Third Party Originators (TPO), or other parties with an interest in the transaction. Interested Party Contribution refers to a payment by an Interested Party, or combination of parties, toward the Borrower’s origination fees, other closing costs and discount points
FHA: Land Subsidence and Sinkholes
Land Subsidence refers to the lowering of the land-surface elevation from changes that take place underground, including damage caused by sinkholes.
FHA: Manufactured Housing
Manufactured housing is a structure that is transportable in one or more sections. They are designed to be used as a dwelling when connected to the required utilities, which include the plumbing, heating, air-conditioning and electrical systems contained therein. Manufactured Housing is designed and constructed to the federal Manufactured Home Construction and Safety Standards (MHCSS) as evidenced by an affixed HUD Certification Label. Manufactured Housing may also be referred to as mobile housing, sectionals, multi-sectionals, double-wide, triple-wide or single-wide (note Fairway Policy).
FHA: Minimum Decision Credit Score (MDCS)
The Minimum Decision Credit Score (MDCS) refers to the credit score reported on the Borrower's credit report when all reported scores are the same. Where three scores are reported, the median score is the MDCS. Where two differing scores are reported, the MDCS is the lowest score. Where only one score is reported that score is the MDCS.
FHA: Minmum Required Investment (MRI)
Minimum Required Investment (MRI) refers to the Borrower's contribution in cash or its equivalent required by Section 203(b)(9) of the National Housing Act, which represents 3.5% of the Adjusted Value of the Property.
FHA: New Construction for Manufactured Homes
New Construction for Manufactured Housing refers to a Manufactured Home that has been permanently erected on a site for less than one year prior to the case number assignment date.
FHA: Onsite Sewage Disposal System
An Onsite Sewage Disposal System refers to wastewater systems designed to treat and dispose of effluent on the same Property that produces the wastewater.
FHA: Proposed Construction
Proposed Construction refers to a property where no concrete or permanent material has been placed. Digging of footing is not considered permanent.
FHA: Self-Sufficiency Rental Income
Self-Sufficiency Rental Income produced by the subject Property over and above the Principal, Interest, Taxes, and Insurance (PITI).
FHA: Under Construction
Under Construction refers to the period from the first placement of permanent material to 100 percent completion with no Certificate of Occupancy (CO) or equivalent.
FIPS stands for Federal Information Property Series. A FIPS code consists of 11 digits. The first two digits identify the State, the second 3 identify the County, and the remaining is the census tract. FIPS Codes are used by the census bureau, among others. In the scope of Home Possible Mortgages, the FIPS Code will be used (by entering a property address) to determine the Area Median Income (AMI) for a specific area.
GSE stands for Government Specific Entity, i.e., Fannie Mae and/or Freddie Mac
Current is defined as no more than 45 days have elapsed since the last paid installment date. The Borrower must have made all payments due in the prior month
GSE Loan Modification Agreement
A loan modification is when some or all of the loan terms are modified to assist the borrower in making their payments during financial hardship.
GSE Payment Deferral Agreement
With a deferral, missed payments are added to the loan as a non-interest bearing balance, and become due at refinance or any other type of liquidation.
A reinstatement involves all missed payments being brought current, typically in a lump sum payment.
GSE Repayment Plan Agreement
A repayment plan is when a borrower agrees to pay an additional amount on top of the regular payment until the missed payments are made-up.
Jumbo: First-Time Homebuyer
First-Time Homebuyer is defined as a borrower who has not owned a home in the last three (3) years. For loans with more than one (1) borrower, where at least one (1) borrower has owned a home in the last three (3) years, first-time homebuyer requirements do not apply.
Principal and interest, taxes, insurance, and any applicable HOA dues
USDA: Repayment Income
Used to determine whether an applicant has the ability to make monthly loan payments. Repayment income is based only on the income attributable to parties to the note and includes some income sources excluded for the purpose of adjusted income.
VA: Appraisal (AAPP)
An appraisal report authorized under 38 U.S.C. 3731 that complies with USPAP and: (a)That is "non-complex," (b)Where the sales price or value is below 1 million dollars, and (c)That is not for a new construction property.
VA: Bonus Entitlement
When entitlment has been previously used and such entitlement has not been restored. Bonus Entitlement is also known as partial entitlement.
VA: Cash Out Refinance
A cash-out refinancing loan is a VA-guaranteed loan that refinances any type of lien or liens against the secured property. The liens to be paid off may be: • current or delinquent, and • from any source, such as tax or judgment liens, or VA, FHA, or conventional mortgages. Loan proceeds beyond the amount needed to pay off the lien(s) may be taken as cash by the borrower for any purpose acceptable to the lender. The loan must be secured by a first lien on the property.