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"Your Education Center" |
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Fannie Mae
see Federal National Mortgage Association.
Farmers Home Administration (FmHA)
Provides financing to farmers and other qualified borrowers
who are unable to obtain loans elsewhere.
Federal Home Loan Bank Board (FHLBB)
The former name for the regulatory and supervisory agency for
federally chartered savings institutions. Agency is now called
the Office of Thrift Supervision
Federal Home Loan Mortgage Corporation(FHLMC)
also called "Freddie Mac"
Is a quasi-governmental agency that purchases conventional
mortgage from insured depository institutions and HUD-approved
mortgage bankers.
Federal Housing Administration (FHA)
A division of the Department of Housing and Urban
Development. Its main activity is the insuring of residential
mortgage loans made by private lenders. FHA also sets standards
for underwriting mortgages.
Federal National Mortgage Association (FNMA)
also know as "Fannie Mae"
A tax-paying corporation created by Congress that purchases
and sells conventional residential mortgages as well as those
insured by FHA or guaranteed by VA. This institution, which
provides funds for one in seven mortgages, makes mortgage money
more available and more affordable.
FHA loan
A loan insured by the Federal Housing Administration open to
all qualified home purchasers. While there are limits to the size
of FHA loans ($155,250 as of 1/1/96), they are generous enough to
handle moderately priced homes almost anywhere in the country.
FHA mortgage insurance
Requires a fee (up to 2.25 percent of the loan amount) paid
at closing to insure the loan with FHA. In addition, FHA mortgage
insurance requires an annual fee of up to 0.5 percent of the
current loan amount, paid in monthly installments. The lower the
down payment, the more years the fee must be paid.
Federal Home Loan Mortgage Corporation(FHLMC)
also called "Freddie Mac"
Is a quasi-governmental agency that purchases conventional
mortgage from insured depository institutions and HUD-approved
mortgage bankers.
Federal Housing Administration (FHA)
A division of the Department of Housing and Urban
Development. Its main activity is the insuring of residential
mortgage loans made by private lenders. FHA also sets standards
for underwriting mortgages.
Federal National Mortgage Association (FNMA)
also know as "Fannie Mae"
A tax-paying corporation created by Congress that purchases
and sells conventional residential mortgages as well as those
insured by FHA or guaranteed by VA. This institution, which
provides funds for one in seven mortgages, makes mortgage money
more available and more affordable.
FHA loan
A loan insured by the Federal Housing Administration open to
all qualified home purchasers. While there are limits to the size
of FHA loans ($155,250 as of 1/1/96), they are generous enough to
handle moderately priced homes almost anywhere in the country.
FHA mortgage insurance
Requires a fee (up to 2.25 percent of the loan amount) paid
at closing to insure the loan with FHA. In addition, FHA mortgage
insurance requires an annual fee of up to 0.5 percent of the
current loan amount, paid in monthly installments. The lower the
down payment, the more years the fee must be paid.
FHLMC
The Federal Home Loan Mortgage Corporation provides a
secondary market for savings and loans by purchasing their
conventional loans. Also known as "Freddie Mac."
Firm Commitment
A promise by FHA to insure a mortgage loan for a specified
property and borrower. A promise from a lender to make a mortgage
loan.
First Mortgage
The primary lien against a property.">
Fixed Installment
The monthly payment due on a mortgage loan including payment
of both principal and interest.
Fixed Rate Mortgage
The mortgage interest rate will remain the same on these
mortgages throughout the term of the mortgage for the original
borrower.
Fully Amortized ARM
An adjustable rate mortgage (ARM) with a monthly payment that
is sufficient to amortize the remaining balance, at the interest
accrual rate, over the amortization term.
FNMA
The Federal National Mortgage Association is a secondary
mortgage institution which is the largest single holder of home
mortgages in the United States. FNMA buys VA, FHA, and
conventional mortgages from primary lenders. Also known as
"Fannie Mae."
Foreclosure
A legal process by which the lender or the seller forces a
sale of a mortgaged property because the borrower has not met the
terms of the mortgage. Also known as a repossession of property.
Freddie Mac
see Federal Home Loan Mortgage Corporation
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