Mortgage Glossary
Condominium
A popular form of home ownership. You own the airspace within the walls, but not the actual walls, ceilings or floors. You may also own a percentage of common areas such as a swimming pool. Common areas are usually maintained by a condominium association, which charges a regular fee.
Conforming Loan
A mortgage loan that meets all the eligibility requirements for purchase by federal agencies such as Fannie Mae and Freddie Mac. The maximum conforming loan amount changes from time to time and varies according to geographical location. Our experienced mortgage representatives are happy to work with you to give you up-to-date information about the loan limits for your local area.
Construction Loan
A short-term loan for financing the cost of construction. The lender makes periodic loan payments directly to the builder or contractors as the home is built.
Contingency
A condition that must be met before the sales contract for your new home is legally binding. For example, the contract might not be binding until a satisfactory home inspection report is obtained from a qualified home inspector.
Conventional Mortgage
A loan that is not part of a government housing program, and is not insured or guaranteed by the federal government. A conforming loan, for instance, is an example of a conventional mortgage.
