The type of loan determines its borrowing limit, down payment requirements, and qualifying rules. Available loan types include conforming, jumbo, FHA, and VA. …
Loan-to-Value Ratio (LTV)
The ratio of the total loan amount to the value of the property. For lending purposes, the value is equal to the purchase price or the appraised value, whichever is lower. …
Local Improvement District (LID)
A legal district established by state law to benefit a specific area. Districts issue bonds to finance improvements such as sidewalks and sewer systems, then levy assessments on real estate in the …
Lock-In
A lender's commitment to a borrower to guarantee (or "lock in") a specific interest rate for a limited amount of time. …
Lock-In Period
A period of time during which the borrower is guaranteed an agreed-upon interest rate, even if market rates rise. The longer the period, the higher the cost (in points) to the borrower. …
Loft
A living space not partitioned into rooms or a small space built above a larger room. …