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Lease purchase
|
| Assists
low to moderate income
homebuyers in purchasing
a home by allowing them
to lease a home with an
option to buy; the rent
payment is made up of
the monthly rental
payment plus an
additional amount that
is credited to an
account for use as a
down payment. |
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Lien
|
| A legal
claim against property
that must be satisfied
when the property is
sold. |
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Loan
|
| Money
borrowed that is usually
repaid with interest.
|
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Loan fraud |
|
purposely giving
incorrect information on
a loan application in
order to better qualify
for a loan; may result
in civil liability or
criminal penalties. |
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|
Loan-to-value (LTV)
ratio |
| A
percentage calculated by
dividing the amount
borrowed by the price or
appraised value of the
home to be purchased;
the higher the LTV, the
less cash a borrower is
required to pay as down
payment. |
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|
Lock-in |
| since
interest rates can
change frequently, many
lenders offer an
interest rate lock-in
that guarantees a
specific interest rate
if the loan is closed
within a specific time.
|
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Loss mitigation
|
| a
process to avoid
foreclosure; the lender
tries to help a borrower
who has been unable to
make loan payments and
is in danger of
defaulting on his or her
loan |
