A consumer protection law that regulates the disclosure
of consumer credit reports by consumer/credit reporting
agencies and establishes procedures for correcting
mistakes on one's credit record.
fair market value
The highest price that a buyer, willing but not compelled
to buy, would pay, and the lowest a seller, willing but
not compelled to sell, would accept.
A congressionally chartered, shareholder-owned company
that is the nation's largest supplier of home mortgage
Community Home Buyer's ProgramSM+
An income-based community lending model, under which
mortgage insurers and Fannie Mae offer flexible
underwriting guidelines to increase a low- or
moderate-income family's buying power and to decrease the
total amount of cash needed to purchase a home. Borrowers
who participate in this model are required to attend
pre-purchase home-buyer education sessions.
A financing option for a fixed-rate mortgage that offers
home buyers a 3 percent down payment loan with either a
25- or 30-year term. The mortgage features a
loan-to-value (LTV) percentage of 97 percent, and is
designed to expand homeownership opportunities for people
with modest incomes. Borrowers must take a pre-purchase
home-buyer education session to qualify for a Fannie 97
Housing Administration (FHA)
An agency of the U.S. Department of Housing and Urban
Development (HUD). Its main activity is the insuring of
residential mortgage loans made by private lenders. The
FHA sets standards for construction and underwriting but
does not lend money or plan or construct housing.
The greatest possible interest a person can have in real
fee simple estate
An unconditional, unlimited estate of inheritance that
represents the greatest estate and most extensive
interest in land that can be enjoyed. It is of perpetual
duration. When the real estate is in a condominium
project, the unit owner is the exclusive owner only of
the air space within his or her portion of the building
(the unit) and is an owner in common with respect to the
land and other common portions of the property.
A mortgage (under FHA Section 244) for which the Federal
Housing Administration (FHA) and the originating lender
share the risk of loss in the event of the mortgagor's
A mortgage that is insured by the Federal Housing
Administration (FHA). Also known as a government
A fee or commission paid to a mortgage broker for finding
a mortgage loan for a prospective borrower.
A lenders agreement to make a loan to a specific
borrower on a specific property.
A mortgage that is the primary lien against a property.
The monthly payment due on a mortgage loan. The fixed
installment includes payment of both principal and
A mortgage in which the interest rate does not change
during the entire term of the loan.
Personal property that becomes real property when
attached in a permanent manner to real estate.
Insurance that compensates for physical property damage
resulting from flooding. It is required for properties
located in federally designated flood areas.
The legal process by which a borrower in default under a
mortgage is deprived of his or her interest in the
mortgaged property. This usually involves a forced sale
of the property at public auction with the proceeds of
the sale being applied to the mrotgage debt.
The loss of money, property, rights, or privileges due to
a breach of legal obligation.
An employer-sponsored investment plan that allows
individuals to set aside tax-deferred income for
retirement or emergency purposes. 401(k) plans are
provided by employers that are private corporations.
403(b) plans are provided by employers that are not for
Some administrators of 401(k)/403(b) plans allow for
loans against the monies you have accumulated in these
plans -- monies must be repaid to avoid serious penalty
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.