Mortgage glossary

A     B     C     D     E     F     G     H     I     J     K     L     M     N     O     P     Q     R     S     T     U     V     W     X     Y     Z

Gazumping: when the seller, having already accepted an offer but before contracts are exchanged, accepts another, higher offer from someone else.

General Warranty Deed: a deed which conveys not only all the grantor's interests in and title to the property to the grantee, but also warrants that if the title is defective or has a "cloud" on it (such as mortgage claims, tax liens, title claims, judgments, or mechanic's liens against it) the grantee may hold the grantor liable. FFI mortgage glossary.

Gift Funds: Free down payment assistance that is given to a buyer in order to help them purchase a home. VA loans allow the use of gift funds to make the down payment on a home, and there are organizations like Ameridream that offer this service. Through the Ameridream program they pay anywhere from 3% to 10% of the cost of the home as a free down payment for the buyer, and once the sale is completed the seller pays the gift money back to the Ameridream program. So the seller is basically giving the buyer down payment assistance in return for buying their home at asking price. FFI mortgage glossary.

Gift Letter: In the case you are given money for a down payment from a friend, relative, or employer you must have a letter stating that the person giving you the money does not expect to be paid back. This is because if you borrow money that is expected to be repaid then the mortgage lender will need to calculate this into your income to debt ratio.

Ginnie Mae: Government National Mortgage Association (GNMA); a government-owned corporation overseen by the U.S. Department of Housing and Urban Development, Ginnie Mae pools FHA-insured and VA-guaranteed loans to back securities for private investment; as With Fannie Mae and Freddie Mac, the investment income provides funding that may then be lent to eligible borrowers by lenders.

Good faith estimate: an estimate of all closing fees including pre-paid and escrow items as well as lender charges; must be given to the borrower within three days after submission of a loan application.

Government loan (mortgage): a mortgage that is insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Mortgages that are not government loans are classified as conventional loans. FFI mortgage glossary.

Graduated Payment Mortgage (GPM): a type of a mortgage that has lower payments initially and then payments increase each year until the loan is fully amortized.

Grantee: the person or entity to whom an interest in real property is conveyed.

Grantor: the person or entity conveying an interest in real property.

Ground rent: an annual charge payable by leaseholders to the freeholder.

Growing Equity Mortgage (GEM): A type of mortgage where the payments increase overtime, but the extra money is applied to the principle of the loan in order to pay off the loan faster. FFI mortgage glossary.

Guarantor: a person who promises they will pay the borrower's debt, usually if the borrower fails to.