Ginnie Mae: See Government National Mortgage Association.

GNMA: See Government National Mortgage Association. Government National Mortgage Association

(GNMA, or Ginnie Mae): Government agency that provides funds for VA and FHA loans.

Good Faith Estimate: Written estimate of costs the borrower will pay at closing, provided by a lender within three days of loan application.

Government Loan: A loan that is insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Contrast with conventional loan.

Graduated Payment Mortgage (GPM): Mortgage in which initial low payments (with potential negative amortization) increase regularly for several years and then level off.

Grace Period: Period of time during which a loan payment may be made after its due date without incurring a late penalty.

Gross Income: Total income before taxes or expenses are deducted.

Growing Equity Mortgage: A fixed-rate loan in which payments increase by a predetermined amount each year, reducing the outstanding balance of the loan. This accelerated payment plan allows repayment of a 30-year loan in 15 to 20 years.

Guarantee or Guaranty: A promise by one party to pay a debt or perform an obligation contracted by another in the event of that person's default.

Gross Monthly Income: Total monthly income before taxes or expenses are deducted. Used in the loan origination process to calculate borrower’s ability to make payments on a loan.