| How Sold | Definition |
|---|---|
| Conventional | A typical home buyer's loan. May or may not be guaranteed by Fannie Mae or Freddie Mac. |
| FHA | A mortgage on which the lender is insured against loss by the Federal Housing Administration. |
| VA | A mortgage on which the lender is insured against loss by the Dept. of Veterans Affairs. |
| Cash | The purchase did not require a mortgage. |
| Contract for Deed | Seller accepted payment for the purchase in installments paid directly to the seller. |
| Owner Carry 1st | Seller finances the transaction through a seller-carried first-position mortgage. |
| Owner Carry 2nd | Seller finances the gap between the buyer's approved mortgage amount and the sales price through a seller-carried second-position mortgage. |
| Lease/Purchase | Leased with opton to purchase. |
| USDA/Rural Development | A mortgage on which the lender is insured against loss by the USDA. |
| Type of Sale | Definition |
|---|---|
| Arm's Length | An arm's length transaction is a transaction in which the buyer and seller act independently, ensuring that both parties act in their own self-interest and the transaction reflects market value. In a private party sale, an arm's length transaction is maintained when the buyer and seller are unrelated and have no special relationship that could affect their decisions or the terms of the sale. |
| Non-Arm's Length | A Non-arm's length transaction refers to a transaction where the buyer and seller have a pre-existing relationship or another connection that may influence their decision-making or the terms of the sale, potentially deviating from fair market value. This could include transactions between related parties, business partners, landlord to tenant, or parties with close personal ties where the transaction terms may not reflect typical market conditions. |
| Foreclosure | A legal process in which a lender sells the property in an attempt to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan. |
| Short Sale | A short sale is the sale of a home for less than the homeowner owes on the mortgage. A homeowner who is unable to keep up with the mortgage payments may try to sell a home in a short sale to avoid going into foreclosure. |
| Unrepresented Seller | The seller did not have agent representation. (FSBO) |