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
Fannie Mae is 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. Over the
past 30 years, Fannie Mae has provided nearly
$2.5 trillion of mortgage financing for over 30
million families.
Fannie Mae's Community Home
Buyer's ProgramSM
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.
Fannie 97®
A financing option for a fixed-rate mortgage
that offers home buyers a 3 percent down payment
loan with either a 25- or 30-year term. The
mortgage features a
loan-to-value (LTV)
percentage of 97 percent, and is designed to
expand
homeownership opportunities for people
with modest incomes. Borrowers must take
a
pre-purchase home-buyer education session to
qualify for a Fannie 97 mortgage.
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 coinsured mortgage
A mortgage (under FHA Section 244) for which the
Federal Housing Administration (FHA)
and the
originating lender share the risk of loss in the
event of the mortgagor's default.
FHA mortgage
A mortgage that is insured by the Federal
Housing Administration (FHA). Also known
as a
government mortgage.
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 mortgage 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-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.
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.
forfeiture
The loss of money, property, rights, or
privileges due to a breach of legal obligation.
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 -- monies must be
repaid to avoid serious penalty charges.
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.
