• Glossary

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123 A B C D E F G H I J L M N O P Q R S T U V W

Fair Market Value

The price that a piece of property will bear in the current market.

Fannie Mae

A private mortgage corporation that began as a government subsidized entity in the late 30s. Today Fannie Mae, along with Freddie Mac, is a government sponsored enterprise (GSE) and together they are responsible for setting annual conforming loan limits and assuring that most Americans are able to finance a home. Fannie Mae is commonly known as a secondary mortgage market and lends to mortgage lenders which in turn extend mortgages to borrowers.

FHA

Federal Housing Administration.

FHA Loan

Loans extended by FHA-approved lenders typically are designed to assist borrowers unable for various reasons to get the approval necessary for conventional home loans.

First Time Buyer

A home loan borrower who has never taken out a mortgage before; often qualifies for various discounts and first-time buyer perks.

Fixed Rate Mortgage

A conventional mortgage that is outfitted with a fixed interest rate over the life of the loan. Monthly payments are the same from month to month.

Flood Certification

In most real estate cases a lender will require a flood certification before making a loan on a home. In areas where a property falls in a flood zone, the borrower may be required to purchase standalone flood insurance before a mortgage and/or home loan is approved.

Foreclosure

The repossession of a home and/or property by a lender in the event of borrower loan default or the inability to meet mortgage agreements.

Freddie Mac

In concert with Fannie Mae, Freddie Mac is a leading government sponsored enterprise (GSE) and is responsible for maintaining reasonable mortgage market stability, this assuring that Americans are able to purchase homes. Freddie Mac is a secondary mortgage market, meaning the corporation lends to lenders, which in turn extend mortgage products directly to borrowers.