FHA Loan and Mortgage Glossary - Terms Beginning with 'U'

  • Underwriting: This is the process by which the lender determines if the borrower is worthy of the loan. They look at all of the information from the borrower including employment, income, debt, credit, and more, and weigh these outcomes with the risk of non-payment.
  • Usury This is excess interest that is charged and goes above the rate that is allowable by law.