A non-U.S. citizen who resides outside of the United States.

A non-U.S. citizen who resides in the United States on a temporary basis on a government-issued work visa.

A loan that does not conform to Federal National Mortgage Association (FNMA) or Federal Home Loan Mortgage Corporation (FHLMC) guidelines because the loan amount is too high or FNMA/FHLMC underwriting or other criteria are not met. Jumbo loans are non-conforming. Also called Sub-prime or BCD.

In a mortgage contract, a statement that disallows a new buyer to assume a Mortgage payment without the approval of the lender.

The amount by which an individual’s assets (or assets of a business) exceed total liabilities.

The remaining income generated by an investment property after deducting all mortgage related expenses, including HOA fees (if applicable) and operating expenses from the gross rental income.

The borrower’s gross income minus federal tax.

A situation in which a borrower is paying less interest than what is actually being charged for a mortgage loan. The unpaid interest is added to the loan’s principal. The borrower may end up owing more than the original amount of the mortgage.

A written agreement to repay a loan. The agreement is secured by a mortgag , serves as proof of an indebtedness, and states the manner in which it shall be paid. The note states the actual amount of the debt that the mortgage secures and renders the mortgagor personally responsible for repayment.

The payment made by a borrower to the lender for transmittal to HUD to help defray the cost of the FHA mortgage insurance program and to provide a reserve fund to protect lenders
against loss in insured mortgage transactions. In FHA insured mortgages this represents an annual rate of one-half of one percent paid by the mortgagor on a monthly basis.