Glossary of Terms
We have compiled a list of the most common real estate terms and definitions to assist you in your search for a home. Whether you are a buyer or seller of real estate it is easy to get confused by the language used in real estate transactions. With our comprehensive real estate glossary you can easily navigate through the complicated world of buying and selling a home.
F
- fair credit reporting act
- A federal law passed that regulates the activity of credit bureaus. It is designed to prevent inaccurate or obsolete information from staying in a consumer's credit file and requires credit bureaus to have reasonable procedures for gathering, maintaining and disseminating credit information. The act also requires credit bureaus to show a consumer their credit file if the consumer presents proper identification, although the bureau reserves the right to charge a fee for doing so.
- fair housing act
- A law that prohibits discrimination in all facets of the homebuying process on the basis of race, color, national origin, religion, sex, familial status or disability.
- Fannie Mae
- A quasi-government agency, now publicly owned, which purchases mortgages from the original mortgage lenders. See also Freddie Mac.
- Federal Home Loan Mortgage Corporation
- Also known as Freddie Mac, the FHLMC is a quasi-governmental corporation that provides funds to lenders for conventional loans.
- Federal Housing Administration
- An agency within the Department of Housing and Urban Development that sets standards for underwriting and insures residential mortgage loans made by private lenders. One of FHA's objectives is to ensure affordable mortgages to those with low or moderate income.
- Fee simple
- This type of ownership, also called fee simple absolute, is the maximum interest a person can have in a piece of real estate. It entitles the owner to use the property in any manner they see fit, in accordance with state and local laws.
- FHA loans
- Loans that are insured by the Federal Housing Administration, a division of Housing and Urban Development of the federal government. There are loan limits dependent upon the location of the property. The advantages to a FHA loan are lower downpayment requirements and typically easier qualification requirements.
- first mortgage
- A mortgage that creates a lien against real property with the lien having first priority against other claims in the event of foreclosure.
- fixed-rate mortgage
- A home loan with an interest rate that will remain at a specific rate for the term of the loan. About 75 percent of all home mortgages have fixed rates. A mortgage with an interest rate that remains constant over the life of the loan.
- fixer-upper
- A house that needs refurbishment or remodeling and usually sells at a below-market price.
- flood insurance
- Hazard coverage that is required in designated flood areas.
- For Sale By Owner
- A generic term meaning that the home is being sold by the owner without the assistance of a Realtor.
- forbearance
- An arrangement whereby the lender may permit the temporary cessation of payments (principal and/or interest), or allow an extension of time for making payments, or accepting smaller payments than were previously scheduled.
- foreclosure
- An enforcement process in which the lender under a defaulted mortgage takes title to the property for the purposes of selling it to recoup moneys owed under the mortgage.
- Freddie Mac
- An acronym for the Federal Home Loan Mortgage Corporation; a major purchaser of mortgages from local lenders. See also Fannie Mae.
