The term “Mortgage” means to put a lien against a property. When you purchase a property, you own the property. When you get a mortgage the lender puts a lien against your property, which stays on the property until you pay it off.

There are different types of mortgages available.

FHA (Federal Housing Authority) mortgage. This is the most popular type, because the government guarantees that lenders will be paid, even if the mortgagee defaults. This is done with a separate fund called MIP , which every borrower contributes funds to keep the fund available, The guidelines under an FHA mortgage are easier because the government wants more people to own homes to keep the economy running.