|
Fair
Housing Act |
| A law that
prohibits discrimination in all
facets of the home buying
process on the basis of race,
color, national origin,
religion, sex, familial status,
or disability. |
| |
|
Fair market value |
| The hypothetical
price that a willing buyer and
seller will agree upon when they
are acting freely, carefully,
and with complete knowledge of
the situation. |
| |
|
Fannie
Mae |
| Federal National
Mortgage Association (FNMA); a
federally-chartered enterprise
owned by private stockholders
that purchases residential
mortgages and converts them into
securities for sale to
investors; by purchasing
mortgages, Fannie Mae supplies
funds that lenders may loan to
potential homebuyers. |
| |
|
Federal
Housing Administration (FHA)
|
| Federal Housing
Administration; established in
1934 to advance homeownership
opportunities for all Americans;
assists homebuyers by providing
mortgage insurance to lenders to
cover most losses that may occur
when a borrower defaults; this
encourages lenders to make loans
to borrowers who might not
qualify for conventional
mortgages. |
| |
|
Fixed-rate
mortgage |
| A mortgage with
payments that remain the same
throughout the life of the loan
because the interest rate and
other terms are fixed and do not
change. |
| |
|
Flood
inurance |
| Insurance that
protects homeowners against
losses from a flood; if a home
is located in a flood plain, the
lender will require flood
insurance before approving a
loan. |
| |
|
Foreclosure |
| A legal process
in which mortgaged property is
sold to pay the loan of the
defaulting borrower. |
| |
|
Freddie
Mac |
| Federal Home
Loan Mortgage Corporation
(FHLM); a federally-chartered
corporation that purchases
residential mortgages,
securitizes them, and sells them
to investors; this provides
lenders with funds for new
homebuyers. |
