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| Fact Amount (Life Insurance) |
The amount the surviving party will receive in the event of death.
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| Fair Housing Act (FHA) |
A Federal act that prohibits discrimination in any aspect related to the sale, rental or financing of dwellings on the basis of race, color, religion, national origin, sex, handicap or familial status.
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| Fannie Mae |
The nation's largest mortgage investor created in 1968 by an amendment to Title III of the National Housing Act. This stockholder-owner corporation, a portion of whose board of directors is appointed by the President of the United States, supports the secondary market in mortgages on residential property.
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| Federal Tax Lien |
A lien attaching to a property for nonpayment of a Federal tax. A Federal tax lien differs from other liens in that it's not automatically eliminated by a senior lien holder foreclosing on a mortgage or trust deed recorded before the tax lien.
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| Fee Simple Estate |
An estate under which the owner is entitled to unrestricted powers to dispose of the property, and under which the property can be left by will or inherited. Commonly, a synonym for ownership. See ESTATE (REAL PROPERTY)
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| FHA/VA Loans |
Why not apply for a government insured loan such as a FHA or VA mortgage. These programs allow for 1-4 family purchases and approved condos. FHA only requires a 3% down payment, which can be your own money, gift from family or a city, town or government grant. You can finance into the loan most of your closing costs and enjoy low Fixed and Adjustable rate programs. VA loan programs allow no money down and have no PMI requirements.
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| FICO |
The name given to a numerical score assigned by credit bureaus to measure a borrower's credit characteristics. See CREDIT SCORE
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| Final Disposition |
The "end" of the loan application process, which may happen via denial, withdrawal, incompleteness or funding.
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| Finance Charge |
This is the amount of interest, prepaid finance charges, loan fees and certain insurance premiums the customer will pay over the life of the loan.
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| First Position Lien |
A secured claim against a property that will be the first claim to be repaid should the property owner someday declare bankruptcy or default on the secured loan.
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| First Time Homebuyers Programs |
Drew Mortgage offers many programs for First Time Homebuyers. Enjoy loan features such as no money down programs on Fixed or Adjustable loan programs. Depending on your credit score, we will allow higher qualifying ratios so you can afford that new home today. We even offer programs for less than perfect credit with attractive rates.
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| Fiscal Year |
The accounting year used by corporations for tax purposes. A fiscal year runs 12 months, but does not necessarily begin in January.
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| Fixed Income |
Income of a specified and consistent value that is received at specified and consistent intervals. Types of fixed income include social security benefits, VA benefits, pension income, permanent disability benefits, welfare/aid income and child support/ alimony.
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| Fixed Rates |
Fixed Rate programs offer you the security of a fixed monthly payment each month that will not change for the term of the loan. You get all your money at once and pay a secure fixed rate until the loan is paid off in full.
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| Fixed-Rate Mortgage |
A mortgage having a rate of interest that remains the same for the life of the mortgage.
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| Flood Insurance |
Insurance indemnifying against loss by flood damage. Required in federally designated special Flood Hazard Areas. The insurance is private but federally subsidized.
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| Floor |
The lowest an adjustable-rate mortgage rate can ever be during the life of the loan.
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| Floor Rate |
The start rate on an adjustable-rate program.
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| Forbearance |
A lender's act of refraining from taking legal action despite the fact a mortgage is in arrears. It's usually granted when a mortgagor makes a satisfactory arrangement by which the arrears will be paid at a future date.
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| Foreclosure |
A proceeding in or out of court, to extinguish all rights, title, and interest, of the owner of property in order to sell the property to satisfy a lien against it.
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| Foreign National Programs |
Drew recognizes the importance of lending in a global community and that not all borrowers meet the traditional residency qualifications. Therefore we have come up with a plan that allows International borrowers to buy any home in the United States they desire.
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| Foster Care Agreement |
A document that designates an individual as the foster parent of a child. These agreements usually state the income the individual will receive for being a foster parent.
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| Free and Clear |
Real property against which there are no liens, especially voluntary liens.
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| Front-end Debt Ratio |
This refers to the debt ratio calculation using only principal, interest, tax and insurance divided by gross monthly income. It's expressed as a percentage. See DEBT RATIO (DR)
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| Full Disclosure |
In real estate, revealing all the known facts that may affect the decision of a buyer or tenant.
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| Fully Adjustable Rate |
See FULLY INDEXED RATE
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| Fully Indexed Rate |
The fully indexed rate is equal to the rate index plus the loan's margin and is used with adjustable-rate mortgages. Example: If LIBOR is 6.50% and the margin on the loan is 4.00%, the fully indexed rate is 10.50%. See FULLY ADJUSTED RATE
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| Functional Obsolescence |
Anything about the design or construction of a property that negatively affects its value. An example of this would be a property with 5 bedrooms and only 1 bathroom.
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| Funding |
The disbursement of loan funds, either by check or by wire transfer to the title company.
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