F

Fannie Mae
In February, 1938, the federal government established Fannie Mae to expand the flow of mortgage money by creating a secondary market. Fannie Mae is a private, shareholder-owned company that works to make sure mortgage money is available for people in communities all across America. Today, Fannie Mae operates under a congressional charter that directs their efforts to increase the availability and affordability of homeownership for low-, moderate-, and middle income Americans.

Federal Housing Administration (FHA)
A federal agency, established by Congress in 1934, in order to make mortgages more affordable for consumers and investments more desirable for lenders. FHA-approved lenders may obtain insurance on mortgage loans that meet FHA standards.

Finance Charge
The dollar amount the credit will cost you during the life of the loan.

First mortgage
The primary mortgage on a property. When the property is sold, the lender who issued the first mortgage is paid first.

Fixed-rate mortgage
A home loan whereby interest remains fixed for the entire loan term.

Foreclosure
A legal procedure in which property mortgaged as security for a loan is sold to pay the defaulting borrower's debt.

Freddie Mac
Freddie Mac is a stockholder-owned corporation chartered by Congress in 1970 to create a continuous flow of funds to mortgage lenders in support of homeownership and rental housing. Freddie Mac purchases mortgages from lenders and packages them into securities that are sold to investors. By doing so, Freddie Mac ultimately provides homeowners and renters with lower housing costs and better access to home financing.

Free and Clear Property
A house that is paid in full and has no mortgage(s) or liens against it.

Funded
This refers to a loan in which checks have been issued.