SFR (Single Family Residence)
A type of residential structure designed to include one dwelling.

Satisfaction of Mortgage
The recordable instrument issued by the lender verifying full payment of a mortgage debt.

Savings & Loan (S&Ls)
Depository institutions that specialize in originating, servicing and holding mortgage loans primarily on owner-occupied residential property.

Second Home (Vacation Home, Weekend Home)
A residence other than the borrower's primary residence which the borrower intends to occupy for a portion of each year. Must be suitable for year-round occupancy.

Second Mortgage
A subordinated lien, created by a mortgage loan, over the amount of a first mortgage. Second mortgages generally carry a higher rate than a first mortgage since they represent a higher risk for an investor.

Secondary Mortgage Market
A market where existing mortgages are bought and sold. It contrasts with the primary mortgage market where mortgages are originated.

Section 8 Housing
Privately owned rental units participating in the low-income rental assistance program. Landlords receive subsidies on behalf of qualified low-income tenants, allowing the tenants to pay a limited proportion of their incomes toward the rent.

Section 32
A trigger on a mortgage loan whereby the interest rate charged by the lender exceeds federally mandated thresholds above comparable federal treasury yields. Enacted as part of the effort to curb predatory lending practices, lenders originating sub prime loans that fall under Section 32 must provide full written disclosure to the borrower in advance.

Section 1031 (1031 Exchange)
A section of the IRS Code that deals with tax free exchanges of certain property.

Security
In lending, the collateral given, deposited, or pledged to secure the payment of a debt.

Seller Carry-Back
An agreement in which the owner of a property provides financing, sometimes in combination with an assumable mortgage.

Servicer
An organization that collects principal and interest payments from borrowers and manages borrowers' escrow accounts. The servicer often services mortgages that have been purchased by an investor in the secondary mortgage market.

Settlement Cost (HUD Guide)
A booklet that provides an overview of the lending process and is required to be given to consumers after the loan application is completed.

Settlement Services
Services provided by the lender at the closing of a loan.

Shared Appreciation Mortgage
A residential loan with a fixed interest rate that is below market, with the lender entitled to a specified share of appreciation of the property over an agreed upon time interval.

Spec Home
A single family dwelling constructed by a builder in anticipation of finding a buyer.

Special Assessment
A special tax imposed on property, individual lots or all property in the neighborhood to pay for improvements: street lights, sidewalks, toll roads, etc. Also known as Mello-Roos.

Special Warranty Deed
The grantor does not warrant against title defects arising from conditions that existed before he/she owned the property. The seller warrants that he/she has done nothing to impair title.

Standard Uniform Loan Application (FNMA 1003)
A standard loan application widely used in the mortgage industry.

Subject To (purchase Subject To a mortgage)
The buyer agrees to make payments on the existing mortgage, without notifying the lender. The seller remains liable for making payments on the loan if the buyer does not make the mortgage payment. The buyer is not personally liable for mortgage payments, but must make payments to keep the property.

Subordinate Debt
Any mortgage or other lien that has a priority that is lower than that of the first mortgage (such as a second mortgage).

Survey
The measurement and description of land by a registered surveyor.

Sweat Equity
Value added to a property due to improvements made personally by the owner.