ARM, FHA, CMA, ETC. Confused By The Letters?

Real Estate Agent with Resident Realty

ARM, FHA, CMA, ETC. Confused By The Letters?

First Time Home Buyer? How about some FAQ’s? Part 2, Lingo. More questions you may have.

This is a continuation of information from part 1, see:

ARM? Adjustible rate mortgage. See below for general information.

CMA? Comparable market analysis. This is a tool to help estimate a home’s value based on recent sales (and sometimes those on market) based on similar (comparable) homes in the area of the target home. This can be use by sellers to help determine a listing price and buyers to help determine offers. This can be prepared by a qualified real estate broker. This is NOT an appraisal.

IDX? Internet Data Exchange. See MLS below. Often real estate brokers can allow visitors to their sites to search homes in their respective MLS via an tool.

See my site at for an example.

FHA? Federal Housing Administration.

FHLMC? Federal Home Loan Mortgage Corporation. Commonly referred to as Freddie Mac (buys mortgages on the secondary market, pools them, and sells them as a mortgage backed security to investors on the open market)

FNMA? Federal National Mortgage Association. Commonly referred to as Fannie Mae.

HOA? Home owner association. When considering purchasing a home in which there is an HOA, be sure to review all the applicable documentation which may include, by example, covenants, rules, restrictions, meeting minutes, financial statements, dues, and management.

HUD? U.S. Department of Housing and Urban Development.

LTV? Loan to value. For example, you put a down payment of 20% of a homes value (generally appraised value in this context) and borrow the remaining 80%. The LTV is 80%. Different loan programs may have different LTV requirements and terms of the loan may differ based on LTV (and many other factors.)

MLS? Multiple listing service. Generally, a database service in which brokers can place and access home listings. Many MLS’s also have other information such as sold homes information; sold prices, concession amounts, listing and selling broker, etc. Different MLS’s have differing rules on who can be a member or who can have comprehensive access to information. Often, there is limited public access through IDX sites.

PMI, MIP? Private mortgage insurance. Mortgage insurance premium. Often, when a borrower borrows more than 80% LTV, the lender requires mortgage insurance (an additional borrower cost) to help insure (the lender) against possible loss in case of loan default.

YOC? Year of construction of home.

These are general uses of real estate terms only intended here to give you a better idea of what they may refer to.

Please seek appropriate advice and counsel in your specific transaction.

RJYCREB? Roy Johnson, your Colorado Real Estate Broker. Please feel free to contact me for any information I can provide.

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