Residential Lending refers to the process of providing loans to individuals for the purchase, refinance, or construction of residential properties, such as houses, condominiums, or apartments. These loans, commonly known as mortgages, are typically offered by banks, credit unions, and other financial institutions. Residential lending is secured by the property itself, meaning the home serves as collateral for the loan. Borrowers usually repay the loan over a set period (15-30 years) with fixed or variable interest rates. Residential loans are used for personal housing needs rather than commercial purposes, and they often require a credit check, income verification, and a down payment.