Terms & Definitions - G

Good Faith Estimate
An estimate of charges which a borrower is likely to incur in connection with a loan closing.

Government Loan
A mortgage that is insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Mortgages that are not government loans are classified as conventional loans.

Government National Mortgage Association
A government-owned corporation within the U.S. Department of Housing and Urban Development (HUD). Created by Congress on September 1, 1968, GNMA performs the same role as Fannie Mae and Freddie Mac in providing funds to lenders for making home loans. The difference is that Ginnie Mae provides funds for government loans (FHA and VA)

Grace Period
A time allowed, usually 15 days, for making late payments without a penalty.

Grantee
The person to whom an interest in real property is conveyed.

Grantor
The person conveying an interest in real property.

Gross Monthly Income
The total amount the borrower earns per month, not counting any taxes or expenses. Often used in calculations to determine whether a borrower qualifies for a particular loan.