| Real Estate Terminology, Wording |
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| Gladwin Real Estate Information |
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| Fair Credit Reporting Act
A federal law that regulates the disclosure of consumer credit reports by consumer/credit reporting agencies, and establishes procedures for rectifying errors on individuals' credit records Fair Housing Act A federal law which prohibits discrimination in housing based on race, color, religion, sex, handicap, familial status and national origin Fair Market Value The highest price that a buyer, who is willing but not required to buy, would pay for a piece of property or home, and the lowest price that a seller, who is willing but not required to sell, would accept Fannie Mae The Federal National Mortgage Association (also FNMA), a private corporation which is federally chartered to provide financial products and services that increase the availability and affordability of housing, by purchasing mortgages from banks and other lending institutions; the FNMA is the largest non-bank financial services company in the world, as well as the largest resource for financing of home mortgages in the U.S. Farmer's Home Administration (FmHA) A federal agency that provides credit assistance to farmers and other individuals residing in rural areas of the U.S. Federal Deposit Insurance Corporation (FDIC) An independent federal agency that insures the deposits in commercial banks Federal Home Loan Mortgage Corporation (FHLMC) A corporation established to purchase primarily conventional mortgage loans in the secondary mortgage market Federal Housing Administration (FHA) An agency of the U.S. Department of Housing and Urban Development (HUD), whose function is the insuring of residential mortgage loans made by private lenders; while setting standards for construction and underwriting, the FHA itself does not lend money, 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 Insurance Mortgage insurance provided by the Federal Housing Administration to protect banks, savings and loans, and mortgage companies against loss on real estate loans FHA Loan A loan insured by the Federal Housing Administration, and made by an approved lender in accordance with the FHA's regulations Firm Commitment A lender’s agreement to make a loan to a specific borrower on a specific property. First Mortgage The mortgage that is in first place among any loans recorded against a property. Usually refers to the date in which loans are recorded, but there are exceptions. Fixed-rate Mortgage 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. Federal National Mortgage Association (FNMA) A governmental agency established to purchase any kind of mortgage loans in the secondary mortgage market from the primary lenders Fee Simple The greatest interest in a parcel of land that is possible, or the total interest in real property Fiduciary Relationship A relationship of trust and confidence, as between principal and agent, trustee and beneficiary, attorney and client Finder's Fee A commission paid to a mortgage broker for sourcing a mortgage loan for a prospective borrower First Mortgage A mortgage that is the primary lien against a property Fixed-rate Mortgage A mortgage in which the interest rate remains fixed over the duration of the term of the loan Fixture Any item of property that is attached to real property such that it becomes a permanent part of the real property, and therefore is usually sold with it Flood Insurance Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas. Foreclosure A legal proceeding usually initiated by the lender or creditors, involving a forced sale of a property owned by a borrower who has defaulted on payment of, or on the terms of, a loan on said property, and whereby the borrower is deprived of his or her interest in the property Forfeiture The loss of money, property, rights, or privileges due to a breach of legal obligation Forfeiture of Title The provision in a deed that accounts for title being passed to another, should certain terms not be met or certain circumstances occur Freddie Mac The Federal Home Loan Mortgage Corporation (FHLMC), a private corporation that is federally chartered to purchases and sells mortgage loans; a major player in the secondary market, along with the Federal National Mortgage Associate (FNMA) Front Ratio The ratio of a potential borrower's monthly housing costs to their gross monthly income, utilized by lenders to qualify an applicant for a loan. Fully Amortized ARM An adjustable-rate mortgage (ARM) with a monthly payment that is sufficient to pay off the remaining balance at the interest accrual rate over the amortization term Fully Indexed Note Rate Te index value at the time of application for an adjustable rate mortgage (ARM) plus the gross margin stated in the note 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. Loans against 401K plans are an acceptable source of down payment for most types of loans. |