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VWXYZFair 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.