| Real Estate Terminology, Wording |
Gladwin Real Estate Information
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.
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.