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 Loan Terms

Loan Definitions
Loan Terms (A)
Loan Terms (B)
Loan Terms (C)
Loan Terms (D)
Loan Terms (E)
Loan Terms (F)
Loan Terms (G)
Loan Terms (H)
Loan Terms (I)
Loan Terms (J & K)
Loan Terms (L)
Loan Terms (M)
Loan Terms (N)
Loan Terms (O)
Loan Terms (P & Q)
Loan Terms (R)
Loan Terms (S)
Loan Terms (T)
Loan Terms (U & V)
Loan Terms (W)
Loan Terms (X,Y,Z)


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The Mortgage Process


Loan Terms and Definitions (F)

Fair Credit Reporting Act: A federal law that gives an individual the right to a copy of his or her credit report. If credit is denied because of what is stated on the report, the individual can request a copy of the report, free of charge.

Fannie Mae (Federal Home Loan Mortgage Association): As a Federal Agency set up in 1938, the Fannie Mae charter was established to buy FHA mortgages. In 1968, the charter was changed, making Fannie Mae eligible to buy conventional mortgages in addition to FHA mortgages.

Federal Fair Housing Law: Law established to promote equality in the housing market. It makes it illegal to discriminate in the sale or rental of residential property for reasons due to race, color, religious affiliation, sex, or national origin.

Federal Tax Lien: A lien attached to property by the Internal Revenue Service (IRS) for nonpayment of taxes. Unlike certain other liens, it cannot be removed by filing bankruptcy.

FHA (Federal Housing Administration): The Federal Housing Administration is a governmental agency set up to insure and guarantee first mortgages, thus making housing affordable for many who could not qualify for conventional loans.

FICO Score (Fair Isaac Company Score): The FICO Score, based on numbers between 300 and 850, is a standardized system devised to evaluate a borrowers credit risk. The FICO score is commonly used by lenders when processing and underwriting a borrowers loan application.

First Mortgage or First Trust Deed: The first mortgage is one that has priority over other mortgages and liens on property. In case of foreclosure, the first mortgage is satisfied ahead of all the rest, except in the case of an IRS lien.

Fixed Rate Mortgage: A mortgage that is secured by real property that has an interest rate that remains the same over the life of the loan.

FmHA (Farmer Home Administration): A federal agency established to make and insure loans to farmers and for rural housing.

Foreclosure: A foreclosure is the legal right of a lender to cause a mortgagor to forfeit his rights to the use of a property while the lender takes the property and sells it to recover it's collateral due to the mortgagor's failure to make the necessary mortgage payments.

Foreclosure Loans: Foreclosure loans are essentially the last available option before a home is lost to a creditor. Essentially, when a foreclosure loan is acquired, another entity pays off the debt, which then transfers over to the new institution which now “owns” the debt and subsequent payments will be made to that new entity. Foreclosure loans allow better terms, including longer loan periods and lower monthly payments.

Foreclosure Loan Modification: A foreclosure loan modification allows homeowners who are in default to keep their homes while amortizing some past due payments into the original principle, assuming that the homeowners can make the monthly payments at that time, regardless of whether or not they could in the past. A foreclosure loan modification plan may also allow a homeowner to renegotiate terms for a longer loan period or by modifying the total amount of the principal.

Freddie Mac (Federal Home Loan Mortgage Corporation): A governmental agency that was set up in 1970 to buy mortgages in the secondary mortgage market. The mortgages must meet guidelines that have been established by Freddie Mac.

Fully Amortized Loan: A loan that is to be paid within a set time with equal, regular payments causing the principal and interest to be paid in full by the due date.

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