Home Loan Glossary – G

Gift Funds

Gift funds are cash gifts received from a credible donor, such as a close relative, to finance a down payment or closing costs on a new home loan. Documentation of the transfer of money, as well as a letter that states that no reimbursement of the funds will be required, needs to be included in the loan file. Gifts from individuals with a financial interest in the property's sale are legally considered to be sales concessions. The value of these gifts must be subtracted from the selling price of the property, and are not treated as assets for closing the sale.

Government Loans

Government loans are insured against default by the Federal Housing Administration, or guaranteed by the Rural Housing Service (RHS), or the Department of Veteran Affairs (VA). The goal of these programs is to increase homeownership opportunities, especially for those with limited funds to contribute toward down payments. Also compare with conventional loans.

Government National Mortgage Association

Also known as Ginnie Mae, this is a corporation within the Department of Housing and Urban Development (HUD). This entity was created by Congress on 1 September 1968, and its primary responsibility is to guarantee investors on-time payments towards mortgage-backed securities.

Grantee

A grantee is an individual to whom an interest in real estate property is transferred, i.e. the buyer.

Grantor

The grantor is the seller of a property, i.e. the person who transfers an interest in a piece of real estate.

Gross Monthly Income

This is a person's guaranteed regular monthly income, including overtime pay, before tax has been deducted. A salary is generally considered to be an individual's primary source of income, but other sources of earnings may qualify if they provide regular and significant income.

Ground Rent

Ground rent is the amount of cash that is paid for the use of a piece of land when the title to the property is a leasehold estate.

Group Home

A group home is a residential structure that has been adapted for use by a group of developmentally disabled persons. A group home provides permanent housing and care services for its disabled occupants.