chicago real estate glossary
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 Z
Fair Credit Reporting Act:
A consumer protection law that regulates the disclosure of consumer credit reports by credit reporting agencies and specifies procedures for challenging errors on a credit record.
Fair Market Value:
The price at which property would be transferred between a willing buyer and willing seller, each of whom has a reasonable knowledge of all pertinent facts and is not under any compulsion to buy or sell.
A New York stock exchange company. It is a public company that operates under a federal charter and is the nation's largest source of financing for home mortgages. Fannie Mae does not lend money directly to consumers, but instead works to ensure that mortgage funds are available and affordable, by purchasing mortgage loans from institutions that lend directly to consumers.
A lender that Fannie Mae has approved to sell loans to it and to service loans on Fannie Mae's behalf.
Fannie Mae/Freddie Mac Loan Limit:
The current 2004 Fannie Mae/Freddie Mac loan limit for a single-family home is $333,700 and is higher in Alaska , Guam , Hawaii , and the U.S. Virgin Islands. The Fannie Mae loan limit is $427,150 for a two-unit home; $516,300 for a three-unit home; and $641,650 for a four-unit home. Also referred to as the "conventional loan limit."
Federal Housing Administration (FHA):
An agency within the U.S. Department of Housing and Urban Development (HUD) that insures mortgages and loans made by private lenders.
A loan that is insured by the Federal Housing Administration (FHA) of the U.S. Department of Housing and Urban Development (HUD).
A mortgage that is the primary lien against a property.
First Time Home Buyer:
A person with no ownership interest in a principal residence during the three-year period preceding the purchase of the security property.
Fixed-Period Adjustable-Rate Mortgage:
An adjustable-rate mortgage (ARM) that offers a fixed rate for an initial period, typically three to ten years, and then adjusts every six months, annually, or at another specified period, for the remainder of the term.
A mortgage with an interest rate that does not change during the entire term of the loan.
Flood Certification Fee:
A fee charged by independent mapping firms to identify properties located in areas designated as flood zones.
Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood hazard zones.
A legal action that ends all ownership rights in a home when the homebuyer fails to make the mortgage payments or is otherwise in default under the terms of the mortgage.
The loss of money, property, rights, or privileges due to a breach of a legal obligation.
Fully Amortized Mortgage:
A mortgage in which the monthly payments are designed to retire the obligation at the end of the mortgage term.
Prepared by and used with the permission of the FTC.