Adjustable-rate mortgage (ARM)

An adjustable-rate mortgage keeps one rate for an initial period, such as 5, 7 or 10 years, then adjusts at set intervals to a published index plus a fixed margin, within caps.

ARM Loans: 3/6, 5/6, 7/6, 10/6 and the 5/5 ARM

Bank statement loan

A bank statement loan calculates your income from 12 or 24 months of deposits into your personal or business account, averaged, instead of the net figure on a tax return that was built to show a small number.

Bank Statement Loans in Orange County: No Tax Returns

Cash to close

Cash to close is the total you bring to closing: the down payment plus closing costs and prepaid items, minus your earnest money deposit and any credits.

Purchase Calculator: 2026 County Loan Limits and Payment

Community Mortgage

The Community Mortgage program is a Non-QM mortgage program where income and employment are not stated on the application at all.

No Income Verification Mortgage: Community CDFI Loan

Conforming loan limit

The conforming loan limit is the largest loan Fannie Mae and Freddie Mac will buy, set each year by the FHFA for every county. A loan above it is a jumbo loan.

Jumbo Loans in Orange County and LA: Financing to $25M

Debt-to-income ratio (DTI)

Debt-to-income ratio is your total monthly debt payments, including the new housing payment, divided by your gross monthly income. Lenders use it to judge how much payment you can carry.

Affordability Calculator: How Much House, What Limits You

Discount points

Discount points are an upfront fee paid at closing to lower the interest rate for the life of the loan. One point equals 1% of the loan amount.

Temporary Buy-down in Orange County: Lower Your Rate

DSCR loan

A DSCR loan qualifies an investment property on its own rental income: gross monthly rent divided by the monthly payment.

DSCR Loans in Orange County: Qualify on Rental Cash Flow

FHA mortgage insurance (MIP)

There is an upfront premium of 1.75% of the loan amount (usually rolled into the loan) plus an annual premium paid monthly, commonly around half a percent.

FHA Loans in Orange County: 3.5% Down, Flexible Credit

HELOC

A HELOC is a revolving line you draw as needed.

HELOC in Orange County: Tap Your Equity, Keep Your Rate

Home equity loan (HELOAN)

A HELOAN is a lump sum at a fixed rate with a set monthly payment.

Home Equity Loan (HELOAN) in Orange County: Fixed Rate

Jumbo loan

A jumbo loan is required once the loan exceeds your county's conforming limit.

Jumbo Loans in Orange County and LA: Financing to $25M

Loan-to-value ratio (LTV)

Loan-to-value ratio is the loan amount divided by the home's value. On a purchase, the value is the lower of the price and the appraisal, so 20% down means an 80% LTV.

Home Loan Programs in Orange County: Jumbo, Non-QM, FHA, VA

Non-QM loan

A Non-QM loan is a mortgage that sits outside the CFPB's Qualified Mortgage rules.

Non-QM Loans in Orange County: Qualify Without Tax Returns

Pre-approval

A pre-approval is a lender's review of your credit, income and assets that shows how much you are likely to qualify for before you make an offer. Final approval still depends on the property and underwriting.

Buy a Home in Orange County and LA: Pre-Approval That Wins

Private mortgage insurance (PMI)

Private mortgage insurance protects the lender on a conventional loan with less than 20% down. It can be removed once you build enough equity.

When Does PMI Come Off? Mortgage Insurance Removal Math

Reverse mortgage (HECM)

For homeowners 62+, a reverse mortgage converts home equity into tax-free cash flow, a lump sum, monthly payments, or a growing line of credit, with no monthly mortgage payment required.

Reverse Mortgage in Orange County: HECM for Homeowners 62+

Temporary buydown (2-1)

A temporary buy-down uses a credit from the seller at closing to temporarily or permanently reduce your mortgage interest rate, lowering your monthly payment, commonly structured as a 2-1 or 1-0 temporary buydown.