When Housing and Urban Development (HUD) secretary Ben Carson recently appeared before the House Financial Services Committee, he did not know what the real estate acronym REO stood for (Real Estate Owned).
Here are some other real estate acronyms you may or may not be familiar with:
CMA (Comparative Market Analysis): A report that helps determine an accurate home value based on comparable homes in a particular area.
FHA (Federal Housing Administration) Loan: A mortgage designed for low-to-moderate income borrowers that is insured by the FHA and issued from an FHA-approved lender. Lower down payments and credit scores are required.
HOA (Homeowners’ Association): An organization in a subdivision, planned community or condominium, usually with an elected Board, that creates and enforces rules for residents and their properties. Dues are used to maintain common areas such as lawns and swimming pools, pay for garbage and recycling collection, and more.
PMI (Private Mortgage Insurance): Insurance that is sometimes required by a lender for protection in the event a buyer defaults on a mortgage. Depending on the lender, this extra premium payment may be waived after a buyer builds up 20% equity in the property.
To learn more real estate terms, check out this site.