fair market value
The amount of money that would be paid for a property offered on the open market for a reasonable period of time where neither the buyer nor the seller is under pressure to buy or sell. |
Fannie Mae (FNMA)
The Federal National Mortgage Association. Largest supplier of mortgage funds in the U.S. |
Federal Housing Administration (FHA)
An agency of the federal government that insures private first mortgage loans for the financing of new and existing homes and home repairs. The FHA does not permit second mortgages on insured mortgage loans. |
fee simple
A purchased property or inherited estate which the owner has the right to control, use and transfer at will. (Not a leasehold estate.) |
firm commitment
A written promise indicating the terms and conditions under which a lender will lend money. In the case of the FHA, it is a commitment assumed to insure the mortgage of a specified mortgagor. |
fixed-rate mortgage
A mortgage with an interest that does not change throughout the term of the loan. |
fixture
Personal property that becomes real property when permanently attached to real estate. An example of a fixture would be a toilet. |
foreclosure
Foreclosure is the result of non-payment of a mortgage leading to a default on the loan. When in default, the borrower is deprived of his or her interest in the mortgaged property by the lender. |
