Credit Reporting Act
protection law that regulates the disclosure of consumer
credit reports by consumer/credit reporting agencies and
establishes procedures for correcting mistakes on one's
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.
Fannie Mae is a New York Stock Exchange company and the
largest non-bank financial services company in the world.
It operates pursuant to a federal charter and is the nation's
largest source of financing for home mortgages. Over the
past 30 years, Fannie Mae has provided nearly $2.5 trillion
of mortgage financing for over 30 million families.
Mae's 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 mortgage.
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
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 default.
A mortgage that is insured by the Federal Housing Administration
(FHA). Also known as a government mortgage.
A fee or commission paid to a mortgage broker for finding
a mortgage loan for a prospective borrower.
A lender's 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 interest.
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 profit organizations.
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 charges.
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.