Understand the most important lending and mortgage terms. Mortgages can be confusing for the first time home buyer, so let us help explain. Below you'll find explanations for most of the mortgage industry terms.

What is Fair Housing Act (FHAct)? Prohibits discrimination in real estate transactions because of race, color, religion, sex, handicap, familial status (families with children), or national origin. It applies to mortgage lending as…
Written by Henry Gilbert
What is Fannie Mae? See Federal National Mortgage…
Written by Henry Gilbert
What is Farmer’s Home Administration (FMHA)? An agency within the U.S. Department of Agricultur that provides financing for homes and farms in small towns and rural…
Written by Henry Gilbert
What is Federal Home Loan Mortgage Corporation? Quasi-governmental agency that purchases conventional mortgages from insured depository institutions and HUD-approved mortgage…
Written by Henry Gilbert
What is Federal Housing Administration (FHA)? A government agency, division of the Department of Housing and Urban Development, that insures residential mortgage loans made by private lenders and sets standards for underwriting mortgage…
Written by Henry Gilbert
What is Federal National Mortgage Association? A quasi government agency created by Congress that buys and sells residential…
Written by Henry Gilbert
What is Federal Reserve? The central bank of the United States and major regulatory agency for many commercial…
Written by Henry Gilbert
What is Fee simple? Absolute ownership of real…
Written by Henry Gilbert
What is FHA? See Federal Housing…
Written by Henry Gilbert
What is FHA Loan? A loan insured by the FHA open to all qualified home…
Written by Henry Gilbert
What is FHAct? See Fair Housing…
Written by Henry Gilbert
What is FHLMC? See Federal Home Loan Mortgage…
Written by Henry Gilbert
What is FIAR? Fully Indexed Accrual Rate (Index +…
Written by Henry Gilbert
What is First mortgage? A mortgage that is in first lien position, taking priority over all other liens. In the case of foreclosure, the first mortgage will be repaid before any other…
Written by Henry Gilbert
What is Fixed Installment? The monthly payment due on a mortgage loan including payment of both principal and…
Written by Henry Gilbert
What is Fixed rate? An interest rate that is fixed for the term of the…
Written by Henry Gilbert
What is Fixed-rate mortgage? A mortgage with an interest rate that doesn't change for the life of the loan, guaranteeing fixed…
Written by Henry Gilbert
What is Flood insurance? A form of hazard insurance required by lenders to cover properties in flood…
Written by Henry Gilbert
What is Floor? The minimum rate of interest payable on an adjustable-rate…
Written by Henry Gilbert
What is Floor (Interest – ARM)? A pre-determined amount that establishes the minimum interest rate life of a loan. This can be expressed as a percentage below the start rate, as a rate of interest independent of the start rate, or,…
Written by Henry Gilbert
What is FMHA? See Farmer's Home…
Written by Henry Gilbert
What is FNMA? See Federal National Mortgage…
Written by Henry Gilbert
What is Forbearance? Grace period given when a lender postpones foreclosure to give the borrower time to catch up on overdue…
Written by Henry Gilbert
What is Foreclosure (or repossession)? Legal process by which the lender forces the sale of a property because the borrower has not met the mortgage…
Written by Henry Gilbert
What is Foreign National borrower? A foreign national borrower is a person who is not a citizen of the host country in which he or she is residing or temporarily sojourning.…
Written by Henry Gilbert
What is Foreign National Mortgage? Foreign National Mortgage is a mortgage provided to an individual who is not a citizen of the United States of America. Certain terms and conditions must be met to qualify for this type of mortgage.…
Written by Henry Gilbert
What is Freddie Mac? The Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac, is a public government-sponsored enterprise (GSE), headquartered in the Tyson's Corner CDP in unincorporated Fairfax County,…
Written by Henry Gilbert
What is Fully Amortized ARM? 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…
Written by Henry Gilbert


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