| FANNIE MAE | Another name for the Federal National Mortgage Association, a federally sponsored agency which buys mortgages from banks, savings and loans, and other lending institutions. Agencies such as Fannie Mae are part of the secondary market. |
| FEE SIMPLE | The absolute total interest in real property. Compare, Life Estate, Reversion. |
| FEE SIMPLE ESTATE | The greatest interest in a parcel of land that it is possible to own. Sometimes designated simply as Fee. |
| FHA GUARANTEE | An insurance contract in which HUD through FHA insures that the named lender will recover a specific percentage of the loan amount from the insurer (FHA) in the event the loan goes bad. |
| FHA LOAN FEDERAL HOUSING ADMINISTRATION | A division of the Department of Housing and Urban Development. Its main activity is the insuring of residential mortgage loans made by private lenders. |
| FINANCING STATEMENT | Lenders record financing statements to evidence personal property is subject to a lien. The company who finances a new furnace, siding or windows may record the financing statement to evidence they have not been fully paid for. |
| FIRST MORTGAGE | The mortgage that has first claim (or "lien") in the event of a default. |
| FIXED RATE MORTGAGE | A mortgage in which the interest rate does not change the entire term of the loan. |
| FIXTURE | An item that is attached to the property, e.g. a dishwasher or air conditioner, and usually sold with it. |
| FLOOD INSURANCE | Insurance required for properties in federally designated flood areas. |
| FORECLOSURE | The process by which a mortgaged property may be sold when a mortgage is in default. |
| FORFEITURE OF TITLE | Provision in a Deed creating a condition which will cause title to be passed to another in the event certain circumstances occur. |
| FREDDIE MAC | Another name for the Federal Home Loan Mortgage Corporation, a federally sponsored agency which buys and sells mortgages. Along with Fannie Mae, Freddie Mac is a major player in the secondary market. |
| FREE AND CLEAR TITLE | Title to a property which is free from any mortgage, lien, or other encumbrance. |
| FREELY ASSUMABLE | Term used to describe a loan which may be assumed by anyone without permission from the lender. In such a situation, however, the original borrower is usually held liable in the event the loan is not repaid. |
| FRONT RATIO | Ratio of monthly housing costs (principal, insurance, taxes, and interest) to gross monthly income used by lenders to evaluate an applicants qualification for a loan. Lenders will typically allow a front ratio between 28 and 40 percent. |
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