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.
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.
Fannie Mae (Federal National Mortgage Association/FNMA)
FNMA is one of the major secondary market investors that purchases loans from mortgage companies and other depository institutions. The company is a private corporation and its stock is traded on the New York Stock Exchange.
Farmers Home Administration (FmHA)
Provides financing to farmers and other qualified borrowers who are unable to obtain loans elsewhere.
The board which oversees the Federal Home Loan Bank systems.
Provides liquidity to supervised financial service companies, such as savings and loans and credit unions. The bank system has several districts.
The board which charters and forbids discrimination in the sale.
Federal Home Loan Mortgage Corporation (Freddie Mac/FHLMC)
A government sponsored agency that is also a publicly traded company on the New York Stock Exchange that purchases mortgage loans from mortgage bankers and financial depository institutions. FHLMC is a major secondary market investor.
Federal Housing Administration
A federal agency which insures first mortgages, enabling lenders to loan a very high percentage of the sale price.
Federal National Mortgage Association
See Fannie Mae.
The regulatory agency for certain commercial banks and bank holding companies. Sets monetary policy for the country and provides liquidity for supervised financial institutions.
A lien attached to property for nonpayment of a federal tax.
The U.S. government's method to identify individual and company's annual tax responsibility. The tax returns identify the income and taxes.
Highest possible degree of ownership of land. The estate allows owners to have unrestricted powers to dispose of property, and which can be left by will or inherited.
A person in a position of trust or responsibility with specific duties to act in the best interest of a client. Real estate brokers and mortgage brokers are fiduciaries.
A promise by FHA to insure a mortgage loam for a specified property and borrower. A promise from a lender to make a mortgage loan.
Financial Depositor Institutions
Banks, savings and loans or credit unions.
Mortgage holding priority over the claims of subsequent lenders against the same property.
Personal property that has become part of the real estate.
A proceeding in or out of court to extinguish all rights, title and interest of the owner(s) of a property in order to sell the property and satisfy a lien against it.
See Federal Home Loan Mortgage Corporation.
Revealing all known facts which may affect the decision of a buyer or tenant.