Definitions (G)

Real Estate Glossary - Meanings, Terms, & Acronyms

GIFT LETTER
A letter to a lender stating that a gift of cash has been made to the buyer(s) and that the person gifting the cash to the buyer is not expecting the gift to be repaid. The exact wording of the gift letter should be requested of the lender.

GINNIE MAE
Created in 1968 by an amendment to Title III of the National Housing Act (12 USC 1716 et seq.), this federal government corporation is a constituent part of the Department of Housing and Urban Development. Among other governmental functions, it guarantees securities backed by mortgages that are insured or guaranteed by other government agencies. Also called Government National Mortgage Association (GNMA).

GOOD FAITH ESTIMATE
A document provided within three days of application that shows borrowers the approximate costs of the transaction, based on common practice in the locality. Under requirements of the Real Estate Settlement Procedures Act (RESPA), the loan originator must deliver or mail the GFE to the applicant.

GOVERNMENT LOAN (MORTGAGE)
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 (GINNIE MAE)

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)

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

GRANTOR

The person conveying an interest in real property.

GROSS CLOSED COMMISSION INCOME

The total amount of commission income a real estate sales agent or broker receives from closed transactions.

GROSS SALE PRICE
The sale price before any concessions.

GUARANTEE
Federal credit aid in which the Federal government pledges its financial liability (full faith and credit) for loans made by private or State or local government institutions.

GUARANTEED LOAN
A loan made, held and serviced by a lender for which Rural Development has entered into a “Lender Agreement” with. See Chapter 3 of this Handbook.

GUARANTEE FEE
The fee paid by the lender to the government for its guarantee. This is sometimes referred to as an insurance fee. The fee is calculated as a percentage of the principal loan amount, and may be passed on to the borrower to be paid separately or included in the loan.

GUARANTEED OFFER
The amount, after appraisals, the employer offers the transferring employee for his or her property.
 
GUARANTEED UNDERWRITING SYSTEM(GUS)
The automated system developed by Rural Development for a lender's underwriters to review the eligibility of single family guaranteed rural housing loan applications for guarantees.