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 MARKE 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 PROGRAM SM
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 COMMITTMENT
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
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