Buying a home can be overwhelming, but even more so when unfamiliar jargon and acronyms are thrown your way. There are over 91 total acronyms that Fannie Mae Sellers Guide references. Here are a few descriptions for common acronyms the mortgage industry has been using to help you through the home buying process.
DTI: Debt to income
- Underwriters turn to this ratio to determine if a borrower can financially meet a mortgage obligation.
UETA: Uniform Electronics Transactions Act
- One of this Act’s purposes is to help harmonize state laws with the recognition of electronic signatures on documents.
PITI: Principal and interest plus taxes and insurance
- Lenders often will break a borrower’s monthly payment down into this equation.
ATR: Ability to repay
- The Dodd-Frank Act mandates that lenders ensure borrowers have the ability to repay their debt.
HOEPA: Home Ownership Equity and Protection Act
- The law helps to determine when a loan becomes considered a high-cost mortgage.
SFHA: Special Flood Hazard Area
- Lenders must monitor flood maps to see if the property has been placed into these zones.