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 FNMA) – 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.
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 (FHA) 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 (FHA). Also known as a government loan.
Filing Status – Please enter here whether you file your income taxes as single, married, separated or head-of household.
Firm Commitment – A lender’s agreement to make a loan to a specific borrower on a specific property.
First Mortgage (Home Loan) – 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 – A mortgage with an interest rate that stays the same (fixed) over the life of the mortgage. Monthly payments for a fixed rate mortgage are very stable and will not change.
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 Check – A survey conducted to determine whether a property is in a flood zone.
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’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.
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 accumulated in these plans – monies must be repaid to avoid serious penalty charges.
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.
Good Faith Estimate – A document provided when you apply for a loan. It provides estimates of all costs associated with obtaining and closing a mortgage loan.
Government Loan – A loan that is insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Contrast with conventional loan.
Government National Mortgage Association (GNMA or Ginnie Mae) – A government-owned corporation within the U.S. Department of Housing and Urban Development (HUD). Created by Congress on September 1, 1968, GNMA assumed responsibility for the special assistance loan programs formerly administered by Fannie Mae.
Grantee – The person to whom an interest in real property is conveyed (e.g. the buyer).
Grantor – The person who conveys an interest in real property (e.g. the seller).
Gross Monthly Income – Normal annual income including overtime that is regular or guaranteed. The before taxes income may be from more than one source. Salary is generally the principal source, but other income may qualify if it is significant and stable.
Ground Rent – The amount of money that is paid for the use of land when title to a property is held as a leasehold estate rather than as a fee simple estate.
Group Home A single-family residential structure designed or adapted for occupancy by unrelated developmentally disabled persons. The structure provides long-term housing and support services that are residential in nature.