Reviewed by Casa Academy and updated July 29, 2026 using the current DBPR checklist and Pearson VUE scheduling guidance.
Loan
A real estate loan is borrowed money secured by a mortgage or deed of trust on property, repaid over time with interest according to promissory note terms, enabling buyers to purchase homes or investors to acquire income property while lenders retain a security interest until the debt is satisfied.
Exam context
Distinguish loan (debt) from mortgage (security instrument). Promissory note is personal obligation; mortgage liens the property. FHA/VA/conventional describe insurance/guaranty programs, not the note itself.
Loan structure
The note states amount, rate, term, and payment schedule. The mortgage or deed of trust pledges the property as collateral. Fixed-rate loans keep the same payment for the life of the loan; adjustable-rate loans reset after an initial fixed period. Balloon loans require a final lump sum unless refinanced. Lenders underwrite income, assets, credit, and collateral value before commitment.
Transaction role
Purchase loans fund acquisition; refinance loans replace existing debt; construction loans disburse in draws during building. Second loans or HELOCs sit behind the first lien. Agents help buyers obtain pre-approval early and understand how loan type affects monthly housing cost and qualification limits.
Examples
Fixed-rate purchase loan
A buyer borrows $320,000 at 6.5% for 30 years with equal monthly payments of principal and interest, gradually reducing the balance while building equity.
Bridge loan
An owner buys a new home before selling the old one using a short-term bridge loan secured by existing equity, repaid when the prior residence closes.
Keep studying
Related terms
- Conventional loanNon-government loan often sold to GSEs.
- Loan commitmentLender promise to fund under stated conditions.
Related resources
- Free exam prep
Practice related licensing questions with instant feedback.
- Real estate glossary hub
Browse all published national glossary entries.
- Florida exam topic hub
Florida-specific explainers and question sets for this topic area.
Sources
- CFPB: mortgage key terms(Consumer Financial Protection Bureau)