Flexible Loan Insurance Program (FLIP)
Definition of "Flexible Loan Insurance Program (FLIP)"
A graduated payment mortgage (GMP) developed to overcome the negative amortization aspects of the GMP. The key to the FLIP mortgage is the use of the buyer's down payment. Instead of being used as s down payment, the cash is deposited in a pledged, interest-bearing savings account where it serves as both a cash collateral for the lender and as a source of supplemental payments for the borrower during the first few years of the loan. The supplemental payment decrease each month and vanishes at the end of a predetermined period. By using this type of program, a borrower is likely to qualify for a larger loan than with a conventional fully-amortized mortgage.
Popular Real Estate Terms
The term assessed value is used to define the dollar value of a property for the applicable taxes. The evaluator, a tax assessor, determines the property’s assessed value for tax ...
Geographical area for which a given governmental agency has authority and responsibility. For example, the jurisdiction of a county court is the county in which it is located. ...
Provision in a credit contract specifying that if the lender sues the borrower for late payments, the borrower accepts guilt in advance, irrespective of the reason for nonpayment. ...
A building having one house hold on the first floor and a second household on the second floor. ...
Loan such as a mortgage that the borrower has consistently made payments on when due over many years. The borrower has proven his creditor worthiness. ...
Person providing advice for compensation about real estate. ...
Money set aside for a possible loss, such as from a fire. ...
A two-by-four used for wall resilience and partitioning. Studs rest on it. ...
In conducting a real estate transaction, each party is presumed honest and fair with no deceit. The intentions are honorable and realistic. If deception occurs without prior knowledge, the ...
Have a question or comment?
We're here to help.