Participating lender

A lender approved by the program administrator to originate its loans and deliver its assistance.

You generally cannot bring an assistance program to any lender you like. Administrators publish a list of participating lenders, and those lenders are the ones who confirm eligibility, lock the rate and layer the assistance onto the first mortgage. Rates and fees still vary between participating lenders, so it is worth comparing more than one.

More terms to know

Adjustable-Rate MortgageA mortgage whose interest rate can change over time based on a benchmark index, usually after an initial fixed period. Payments can rise or fall when the rate adjusts.
AmortizationThe schedule that shows how each mortgage payment is split between interest and principal over the life of the loan. Early payments go mostly toward interest.
Annual Percentage RateA yearly cost figure that combines the interest rate with certain lender fees, so it is often higher than the interest rate alone. It is meant to help compare loan offers.
AppraisalA licensed appraiser's independent opinion of a home's market value, ordered by the lender to confirm the home supports the loan amount.
Area median incomeThe midpoint household income for a metropolitan area or county, published annually and used to set income limits for assistance programs.
ClosingThe final step of a purchase, where documents are signed, funds are transferred and ownership moves to the buyer. Some areas call it settlement or escrow closing.