REAL ESTATE GLOSSARY
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Fair Credit
Reporting Act
A consumer protection law that regulates the disclosure of
consumer credit reports by consumer/credit reporting
agencies and establishes procedures for correcting mistakes
on one's credit record.
fair market value
The highest price that a buyer, willing but not compelled to
buy, would pay, and the lowest a seller, willing but not
compelled to sell, would accept.
Fannie Mae (FNMA)
The Federal National Mortgage Association, which is a
congressionally chartered, shareholder-owned company that is
the nation's largest supplier of home mortgage funds. For a
discussion of the roles of Fannie Mae, Freddie Mac (FHLMC),
and Ginnie Mae (GNMA), see the Library.
Fannie Mae's Community Home Buyer's Program
An income-based community lending model, under which
mortgage insurers and Fannie Mae offer flexible underwriting
guidelines to increase a low- or moderate-income family's
buying power and to decrease the total amount of cash needed
to purchase a home. Borrowers who participate in this model
are required to attend pre-purchase home-buyer education
sessions.
Federal
Housing Administration (FHA)
An agency of the U.S. Department of Housing and Urban
Development (HUD). Its main activity is the insuring of
residential mortgage loans made by private lenders. The FHA
sets standards for construction and underwriting but does
not lend money or plan 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 mortgage
A mortgage that is insured by the Federal Housing
Administration (FHA). Along with VA loans, an FHA loan will
often be referred to as a government loan.
firm commitment
A lender's agreement to make a loan to a specific borrower
on a specific property.
fixture
Personal property that becomes real property when attached
in a permanent manner to real estate.
flood insurance
Insurance that compensates for physical property damage
resulting from flooding. It is required for properties
located in federally designated flood areas.
foreclosure
The legal process by which a borrower in default under a
mortgage is deprived of his or her interest in the mortgaged
property. This usually involves a forced sale of the
property at public auction with the proceeds of the sale
being applied to the mortgage debt.
government loan
(mortgage)
A mortgage that is insured by the Federal Housing
Administration (FHA) or guaranteed by the Department of
Veterans Affairs (VA) or the Rural Housing Service (RHS).
Mortgages that are not government loans are classified as
conventional loans.
Government National Mortgage Association (Ginnie Mae)
A government-owned corporation within the U.S. Department of
Housing and Urban Development (HUD). Created by Congress on
September 1, 1968, GNMA performs the same role as Fannie Mae
and Freddie Mac in providing funds to lenders for making
home loans. The difference is that Ginnie Mae provides funds
for government loans (FHA and VA)
grantee
The person to whom an interest in real property is conveyed.
grantor
The person conveying an interest in real property. |