Click on a link below
for an alphabetized list of Real Estate and Mortgage
Terms.
A
| B | C
| D | E
| F | G
| H | I
| J | L
| M | N
| O | P
| Q | R
| S | T
| U | V
| W | Y
| Z
Fair Credit Reporting Act
A consumer protection law that regulates the disclosure
of consumer credit reports by consumer/credit reporting
agencies and establishes procedures for correcting mistakes
on one's credit record.
Fair market value
The highest price that a buyer, willing but not compelled
to buy, would pay, and the lowest a seller, willing
but not compelled to sell, would accept.
Fannie Mae (FNMA)
The Federal National Mortgage Association, which is
a congressionally chartered, shareholder-owned company
that is the nation's largest supplier of home mortgage
funds. For a discussion of the roles of Fannie Mae,
Freddie Mac (FHLMC), and Ginnie Mae (GNMA), see the
Library.
Fannie Mae's Community Home Buyer's Program
An income-based community lending model, under which
mortgage insurers and Fannie Mae offer flexible underwriting
guidelines to increase a low- or moderate-income family's
buying power and to decrease the total amount of cash
needed to purchase a home. Borrowers who participate
in this model are required to attend pre-purchase home-buyer
education sessions.
Federal Housing Administration (FHA)
An agency of the U.S. Department of Housing and Urban
Development (HUD). Its main activity is the insuring
of residential mortgage loans made by private lenders.
The FHA sets standards for construction and underwriting
but does not lend money or plan or construct housing.
Fee simple
The greatest possible interest a person can have in
real estate.
Fee simple estate
An unconditional, unlimited estate of inheritance that
represents the greatest estate and most extensive interest
in land that can be enjoyed. It is of perpetual duration.
When the real estate is in a condominium project, the
unit owner is the exclusive owner only of the air space
within his or her portion of the building (the unit)
and is an owner in common with respect to the land and
other common portions of the property.
FHA mortgage
A mortgage that is insured by the Federal Housing Administration
(FHA). Along with VA loans, an FHA loan will often be
referred to as a government loan.
Firm commitment
A lender’s agreement to make a loan to a specific
borrower on a specific property.
First mortgage
The mortgage that is in first place among any loans
recorded against a property. Usually refers to the date
in which loans are recorded, but there are exceptions.
Fixed-rate mortgage
A mortgage in which the interest rate does not change
during the entire term of the loan.
Fixture
Personal property that becomes real property when attached
in a permanent manner to real estate.
Flood insurance
Insurance that compensates for physical property damage
resulting from flooding. It is required for properties
located in federally designated flood areas.
Foreclosure
The legal process by which a borrower in default under
a mortgage is deprived of his or her interest in the
mortgaged property. This usually involves a forced sale
of the property at public auction with the proceeds
of the sale being applied to the mortgage debt.
401(k)/403(b)
An employer-sponsored investment plan that allows individuals
to set aside tax-deferred income for retirement or emergency
purposes. 401(k) plans are provided by employers that
are private corporations. 403(b) plans are provided
by employers that are not for profit organizations.
401(k)/403(b) loan
Some administrators of 401(k)/403(b) plans allow for
loans against the monies you have accumulated in these
plans. Loans against 401K plans are an acceptable source
of down payment for most types of loans.
|
