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a b c d e f g h i j k l m n o p q r s t u v w x y
Fixed-rate mortgage
There are two types of conventional loans: the fixed-rate and the adjustable-rate mortgage. In a fixed-rate mortgage the interest rate stays the same throughout the life of the loan.
FHA loans
FHA loans are part of a group of loans that are insured by the federal government. This means that instead of actually lending money, the FHA insures banks and private lenders that they will cover losses they might incur in the event that the borrower does not repay the loan in full or timely. Read our blog post for more detailed information on how FHA loans work.
Fair Housing Act of 1968
The term for Title VIII of the Civil Rights Act of 1968 as amended, which prohibits discrimination based on race, color, sex, religion, national origin, handicaps, and familial status in the sale and rental of residential property.
Federal Home Loan Mortgage Corporation (FHLMC)
A federally chartered corporation created to provide a secondary mortgage market for conventional loans ( Freddie Mac).
Federal National Mortgage Association (FNMA)
Fannie Mae” is the popular name for this federally chartered corporation, which creates a secondary market for existing mortgages. FNMA does not loan money directly, but rather buys DVA, FHA, and conventional loans.
Fair Housing Act of 1968
The term for Title VIII of the Civil Rights Act of 1968 as amended, which prohibits discrimination based on race, color, sex, religion, national origin, handicaps, and familial status in the sale and rental of residential property.
Federal Home Loan Mortgage Corporation (FHLMC)
A federally chartered corporation created to provide a secondary mortgage market for conventional loans (Freddie Mac).
Federal Housing Administration (FHA)
A federal administrative body created by the National Housing Act in 1934 to encourage improvement in housing standards and conditions, to provide an adequate home-financing system through the insurance of housing mortgages and credit, and to exert a stabilizing influence on the mortgage market.
Federal income tax
An annual tax based on income, including monies derived from the lease, use, or operation of real estate.
Federal National Mortgage Association (FNMA)
“Fannie Mae” is the popular name for this federally chartered corporation, which creates a secondary market for existing mortgages. FNMA does not loan money directly, but rather buys DVA, FHA, and conventional loans.
Fee-simple estate
The maximum possible estate or right of ownership of real property continuing forever.
FHA appraisal
An FHA evaluation of a property as a security for a loan. Includes the study of the physical characteristics of the property and the surroundings, and the location of the property.
FHA loan
A loan insured by the FHA and made by an approved lender in accordance with FHA regulations.
Fiduciary relationship
A relationship of trust and confidence, as between trustee and beneficiary, attorney and client, principal and agent.
First mortgage
A mortgage that creates a superior voluntary lien on the property mortgaged relative to other charges or encumbrances against the property.
Fiscal policy
The government’s policy in regard to taxation and spending programs. The balance between these two areas determines the amount of money the government will withdraw or feed into the economy in an attempt to counter economic peaks and slumps.
Fixture
An article that was once personal property but has been so affixed to real estate that it has become real property.
Forcible entry and detainer
A summary proceeding for restoring to possession of land one who is wrongfully kept out or has been wrongfully deprived of the possession.
Foreclosure
A legal procedure by which property used as security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document. The foreclosure procedure brings the rights of all parties to a conclusion and passes the title in the mortgaged property either to the holder of the mortgage or to a third party who may purchase the realty at the foreclosure sale, free of all encumbrances affecting the property subsequent to the mortgage.
Foreign acknowledgment
An acknowledgment taken outside of the state in which the land lies.
Franchise
A private contractual agreement to run a business using a designated trade name and operating procedures.
Fraud
A misstatement of a material fact made with intent to deceive or made with reckless disregard of the truth and that actually does deceive.
Freehold estate
An estate in land in which ownership is for an indeterminate length of time, in contrast to a leasehold estate.
Functional obsolescence
The impairment of functional capacity or efficiency; the inability of a structure to perform adequately the function for which it currently is employed. Functional obsolescence reflects the loss in value brought about by factors that affect the property, such as overcapacity, inadequacy, or changes in the art.
Funding fee
A fee required by the Department of Veterans Affairs for making a VA guaranteed loan. The funding fee is added in with the loan and then forwarded to the VA to guarantee a veteran’s loan.
Future interest
A person’s present right to an interest in real property that will not result in possession or enjoyment until sometime in the future, such as a reversion or right of reentry. Real estate terms that begin with G
Fair Market Value
The price for a property that is agreed upon by both the seller and a buyer.