Knowledge is power and there’s no difference when it comes to obtaining a home loan! To help you on the journey to becoming an educated borrower, we’ve created this glossary of terms you’ll need to know during your home loan process.
There are currently 7 names in this directory beginning with the letter F.
Fair Housing Act
The Fair Housing Act was signed in 1968 by President Lyndon Johnson. It prohibits home sellers and lenders from discriminating against customers because of race, color, religion, sex, familial status, or national origin.
Fair Lending
Fair lending is the practice outlined in the Fair Housing Act of 1968. It prohibits lenders from discriminating against borrowers on the basis of race, color, national origin, religion, sex, familial status, or physical handicap.
Fair Market Value
Fair market value is the estimate of the market value of a property. FMV is based on what a knowledgeable, willing, and non-pressured buyer would probably pay to a seller.
Federal Housing Administration (FHA)
The Federal Housing Administration (FHA) is a government agency that sets standards for construction, underwriting, and insures bank loans and loans by private lenders for home building.
FHA Loan
A FHA loan is a mortgage issued by federally qualified lenders and insured by the FHA. FHA loans are designed for low-to-moderate income borrowers who cannot make a large down payment.
Fixed-Rate Mortgage
A fixed-rate mortgage is a fully amortizing loan, whose interest rate remains that same throughout the life of the loan
Forbearance
Forbearance is an option given to borrowers who are experiencing difficulty making their mortgage payments. It involves the temporary suspension of a mortgage loan’s terms by the lender in order to give the borrower a chance to get back on his/her feet. All missed payments must be eventually paid.