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 Housing Laws: Federal, state, and local laws, particularly Title VIII of the 1968 Civil Rights Act, Title VI of the Civil Rights Act of 1964, and the Civil Rights Act of 1866, that prohibit housing discrimination on the basis of race, sex, color, religion, or national origin, in the selling or renting of homes or apartments, and in other specified transactions. These laws have been recently been expanded to include familial status (having children) and disabilities (Americans with Disabilities Act). They apply to all aspects of the landlord/tenant relationship, from refusing to rent to members of certain groups to providing different services during tenancy. Fannie Mae: A common nickname for the Federal National Mortgage Association. FDIC: The Federal Deposit Insurance Corporation. Federal Deposit Insurance Corporation: Also known as FDIC.  Independent deposit insurance agency created by Congress to maintain stability and public confidence in the nation's banking system.  FDIC has insured deposits and promoted safe and sound banking practices since 1933.  FDIC insurance is offered at almost every US bank and savings and loan. In general, the FDIC insures individual accounts in each financial institution for a maximum of $100,000.00 per account.  An individual or entity may only be insured for a total of $100,000.00 for all the accounts held in any one institution, or any of its branches. Federal Emergency Management Agency: Also known as FEMA. They are a governmental unit that has leadership responsibilities for the Nation's emergency management system. Once the President has declared a major disaster, FEMA coordinates not only its own response activities but also those of as many as 28 other Federal agencies that may participate.  FEMA also works with States, territories, and communities during non-disaster periods to help plan for disasters, develop mitigation programs, and anticipate what will be needed when major disasters occur.  Among its many responsibilities the agency operates the Federal Insurance Administration, which makes flood insurance available to residents of communities that agree to adopt and enforce sound floodplain management practices. Federal Home Loan Mortgage Corporation: (FHLMC) See Freddie Mac. Federal Home Loan Mortgage Corporation: Also known as Freddie Mac or FHLMC. Chartered by Congress in 1970, Freddie Mac is a publicly held corporation that purchases mortgages in the secondary mortgage market.  Freddie Mac came into being as the Federal Home Loan Mortgage Corporation (FHLMC) with the mission to create a continuous flow of funds to mortgage lenders.  By supplying lenders with the money to make mortgages and packaging the mortgages into marketable securities which are sold to investors, Freddie Mac also helps to sustain a stable mortgage credit system which in turn, reduces the mortgage rates paid by homebuyers.  Over the years, Freddie Mac has been responsible for opening the door to homeownership for one out of six home buyers in America who would not have qualified otherwise. Federal Housing Administration: Also known as FHA.  A federal agency within the Department of Housing and Urban Development (HUD), which insures residential mortgage loans made by private lenders and sets standards for underwriting mortgage loans. Federal National Mortgage Association: Also known as Fannie Mae or FNMA.  Created by Congress in 1938 to bolster the housing industry during the Depression, Fannie Mae was originally part of the Federal Housing Administration (FHA) and authorized to buy only FHA-insured loans to replenish lenders' supply of money. In 1968, Fannie Mae became a private company operating with private capital on a self-sustaining basis.  Its role was expanded to buy mortgages beyond traditional government loan limits, reaching out to a broader cross-section of Americans. Today, Fannie Mae operates under a congressional charter that directs it to channel its efforts into increasing the availability and affordability of homeownership for low-, moderate-, and middle-income Americans. Fannie Mae receives no government funding or backing, and is one of the nation's largest taxpayers as well as one of the most consistently profitable corporations in America.  Fannie Mae establishes strict guidelines for mortgage loans it is willing to purchase.  As the largest buyer of mortgage loans in the US, these guidelines have become the industry standard for the majority of home loans   Any loan that meets these Fannie Mae guidelines is called a "conforming loan".  Fee Simple: Absolute ownership of real property.  Also used to to denote a property where the owner has undivided title to the land on which the property is situated. FHA Loans: Fixed- or adjustable-rate loans insured by the U.S. Department of Housing and Urban Development. FHA loans are designed to make housing more affordable, particularly for first-time homebuyers. FHA loans typically permit borrowers to buy a home with a lower down payment than conventional loans. With FHA insurance, eligible buyers can purchase a home with a down payment as little as 3% of the appraised value or the purchase price, whichever is lower. FHA borrowers typically are required to participate in a face-to-face meeting with their lender or a government approved mortgage counselor prior to closing on a new mortgage loan. The current FHA loan limits vary depending on home type and home location. FHA: See Federal Housing Administration. FHLMC: See Federal Home Loan Mortgage Corporation. Fiduciary: The relationship of trust, honesty and confidence between agent and principal; the faithful relationship owed by an agent to the principal. Finder's Fee: A fee charged by real estate brokers and apartment-finding services in exchange for locating a rental property. These fees are permitted by law. Some landlords, however, charge finder's fees merely for renting a place. This type of charge is not legitimate and, in some areas, is specifically declared illegal. First Mortgage: A mortgage which is in first lien position, taking priority over all other liens. In the case of a foreclosure, the first mortgage will be repaid before any other mortgages. Fixed Rate Loans: Fixed-rate loans have interest rates that do not change over the life of the loan. As a result, monthly payments for principal and interest are also fixed for the life of the loan. Fixed-rate loans typically have 15-year or 30-year terms. With a fixed-rate loan, you will have predictable monthly mortgage payments for as long as you have the loan. Fixture: Personal property which has been attached to real estate so as to become part of the real property. The article must meet at least one of three conditions: 1. Attached in a permanent manner. 2. Specially adapted to the property. or 3. Intentionally made part of the real property. Flood Control District: A special taxing district created to provide flood control in specific areas of a county. Flood Insurance: A special and separate type of homeowner's insurance that provides coverage for damages resulting from flooding.  Flood insurance is required by most lenders only if the property is located within a designated flood plain.  The cost of the policy is related to the associated flooding risk.  If a property has a small section of land located within a flood plain, but away from the residential improvements (house), the lender will still require a policy, but its cost will be much lower.  Flood Plain: Flood plains are by definition subject to periodic flooding. They are generally characterized by relatively flat topography and soil types that were laid down during past inundations by flood waters.  If your property is in the 100-year flood plain, there is a 1-in-100 chance in any given year that your property will flood. If it is in the 25-year flood plain, there is a 1-in-25 chance in any given year that your property will flood. The statistical chance of flooding is not changed by any one flooding event; but repeated flooding may result in the flood plain being recalculated. FNMA: See Federal National Mortgage Association. For Sale By Owner: Also known as FSBO.  An individual homeowner who is attempting to sell his property without a real estate broker.  The acronym, FSBO is pronounced "fizzbo." Forbearance: The act by the lender of refraining from taking legal action on a mortgage loan that is delinquent. Foreclosure (or Repossession): Legal process by which a mortgaged property may be sold to pay off a mortgage loan that is in default. Forfeiture: The loss of property or a privilege due to breaking a law. For example, a landlord may forfeit his or her property to the federal or state government if the landlord knows it is a drug-dealing site but fails to stop the illegal activity.  Likewise, a homeowner may lose his house to satisfy IRS debts or if the government suspects the home was bought with money derived from criminal acts.  The government may seize and sell the property at auction, often far below its fair market value, before the homeowner has been allowed the due process of a trial.  If the homeowner is found not guilty, the government is only required to pay back the amount received at auction, and not the market value. Fraud: A misstatement of a material fact made with intent to deceive or made with reckless disregard of the truth, and which actually does deceive. Freddie Mac: See Federal Home Loan Mortgage Corporation. Front Foot: One linear foot (12 inches) along the street side of a lot. FSBO: See For Sale By Owner Functional Obsolescence: Loss of value of real property caused by modernization or changing tastes or standards; e.g.. single bath, inadequate closet space, etc. Contrast with economic obsolescence. # -  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