A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z |
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Terms: F |
| Fair Credit Reporting Act |
| A consumer protection law that regulates the disclosure and use of consumer credit information, establishes rules for credit reporting to consumer credit reporting agencies, and establishes procedures for a consumer to view his or her credit report and correct mistakes on it. |
| Fair Market Value |
| The price that a buyer, willing but not compelled to buy, and a seller, willing but not compelled to sell, would agree on. |
| Fannie Mae (Federal National Mortgage Association) |
| A New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation's largest source of financing for home mortgages. It adds liquidity to the mortgage market by investing in home loans through the country. |
| Fannie Mae's Community Home Buyer's Program |
| An income based community lending mode, 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 loan underwriting but does not lend money or plan or construct housing. |
| Fee Simple |
| 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 Coinsured Home Loan |
| A loan (under FHA Section 244) for which the Federal Housing Administration and the originating lender share the risk of loss in the event of the borrower's default. |
| FHA Home Loan |
| A mortgage home loan that is insured by the Federal Housing Administration. Also known as a government loan. |
| FHA Loans |
| FHA loans are available to help people who can't necessarily afford a 10% down payment on a new home. If approved, the Federal Housing Administration will cover up to 97.75% of the purchase price. |
| FHA Mortgage Insurance |
| Requires a fee (up to 2.25% of the loan amount) which is paid at closing to insure the loan with FHA. In addition, FHA mortgage insurance requires an annual fee of up to 0.5% of the current loan amount paid in monthly installments. The lower the down payment, the more years the fee must be paid. |
| FICO Score |
| A FICO score is a credit score developed by Fair Isaac and Co. Credit scoring is a method of determining the likelihood that credit users will pay their bills. Scoring has become widely accepted by lenders as a reliable means of credit evaluation. A credit score attempts to condense a borrowers credit history into a single number. |
| Finder's Fee |
| A fee or commission paid to a mortgage broker for finding a mortgage loan for a prospective borrower. |
| Firm Commitment |
| A lender's agreement to make a loan to a specific borrower on a specific property. |
| First Mortgage |
| A home loan that is the primary lien against a property. |
| Fixed Installment |
| The monthly payment due on a mortgage loan. The fixed installment includes payment of both principal and interest. |
| Fixed Period ARM |
| Provides a fixed rate for 3, 5, 7 or 10 years then adjusts annually based on a financial index for the remaining loan term. |
| Fixed Rate Mortgage (FRM) |
| 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 (such as a lighting fixture or an in-ground spa). |
| Flood Insurance |
| Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas. |
| FNMA |
| The Federal National Mortgage Association is a secondary mortgage institution which is the largest single holder of home mortgages in the United States. FNMA buys VA, FHA and conventional mortgages from primary lenders. Also known as Fannie Mae. |
| Foreclosure |
| The legal process by which a borrower's interest in mortgaged property is taken because of a default on the loan. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt. |
| Forfeiture |
| The loss of money, property, rights, or privileges due to a breach of legal obligation. |
| Freddie Mac (Federal Home Loan Mortgage Corporation) |
| A federal agency within the Department of Housing and Urban Development (HUD), which insures residential mortgage loans made by private lenders and sets standards for underwriting mortgage loans. |
| Fully Amortized ARM |
| An adjustable rate mortgage (ARM) with a monthly payment that is sufficient to amortize the remaining balance, at the interest accrual rate, over the amortization term. |