Fair Credit Reporting Act 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.
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 financing option for a fixed-rate mortgage that offers home buyers a 3 percent down payment loan with a term between 15 and 30 years. 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. This is a fixed-rate mortgage, with terms between 15 and 30 years. It is suitable for borrowers who have limited funds for their down payment and closing costs.
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 31 years, Fannie Mae has provided nearly $2.8 trillion of mortgage financing for over 34 million families.
Fannie Mae-approved lenders can offer the widest range of mortgage products available to meet your needs and can help you find the lowest cost mortgage. A Fannie Mae approved lender will work with you to help you find the lowest cost mortgage for which you can qualify. Fannie Mae has taken a public stance in favor of consumer rights and against any type of predatory lending. We work with lenders that advance these same rights, not charging exorbitant fees, or steering customers to mortgages that aren't in their best interests. We also make available to our lenders a set of technology tools, like Desktop Underwriter®, that speed the loan approval process and help reduce its costs. When you work with a Fannie Mae approved lender who uses Desktop Underwriter, you can get your mortgage processed quicker, spend less time on paperwork, and possibly save money in closing costs. So, when you work with a Fannie Mae approved lender, you work with a lender that not only makes credit easier to access and may be more affordable but offers you a streamlined mortgage process. Fannie Mae approved lenders can also offer you the widest range of
mortgage products available -- no matter what your need. Use our Find
a Lender feature to locate a lender serving your area to learn about
the variety of Fannie Mae mortgage products available.
The current Fannie Mae loan limit for a single-family home is $417,000.* The maximum amount for any Fannie Mae mortgage in Alaska, Hawaii, and the U.S. Virgin Islands is 50 percent higher than our loan limits in the rest of the country. Generally, any mortgage above this limit is considered a "jumbo loan", and will carry a higher interest rate. The amount of money you would save buying a home with a 30-year mortgage financed by Fannie Mae can range from several thousand dollars to as much as $24,600 over the life of a 30-year mortgage. *The Fannie Mae loan limit is $533,850 for a two-family home; $645,300 for a three-family home; and $801,950 for a four-family home.
Fannie Mae works to reduce down payment requirements and cut closing costs when developing mortgage products so more dreams of homeownership can come true. Fannie Mae provides technology tools for Fannie Mae approved lenders to use when providing mortgages to home buyers. These tools can help borrowers get their mortgages quicker and cheaper. Fannie Mae, working with our lender partners, develops and funds mortgages that make it possible for more Americans to own homes. You can find an array of Fannie Mae mortgages, including fixed-rate mortgages, adjustable-rate mortgages, low down payment mortgages, home improvement mortgages, reverse mortgages, special financing mortgages, and others offered through Fannie Mae approved lenders. What distinguishes Fannie Mae mortgages? Simply put -- you will pay less. Generally, any mortgage above the Fannie Mae loan limit is considered a "jumbo loan", and it will carry a higher interest rate than a Fannie Mae loan. Another way to distinguish a Fannie Mae mortgage from
others is the time and costs involved in getting one. When developing
mortgage products,
Fannie Mae works to reduce down payment requirements and cut closing
costs, so more dreams of homeownership can come true. That's why we
provide technology tools for Fannie Mae approved lenders to use when
providing mortgages to home buyers. These tools can help borrowers
get their mortgages quicker and cheaper. When shopping for a Fannie
Mae mortgage, ask whether you can get it approved and processed fast
-- and with possible costs savings -- using Fannie Mae's Desktop Underwriter®.
Fannie Mae owns, manages, and has available for sale, single-family detached homes, two- to four-unit properties, condominiums, and townhouses in a variety of neighborhoods. The number, type, and sales price may vary substantially. The homes vary in age and may require repairs. Fannie Mae homes are sold through local real estate brokers whose contact information is provided in the Fannie Mae-owned Properties Search results under Resources on fanniemae.com.
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. Fannie Mae's signature low down payment product, the Community Home Buyer's Program lets you use a greater amount of your monthly income toward housing costs compared to other standard mortgage products.
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 estate. Fee simple ownership provides the owner with unrestricted powers to
dispose of the owned property as the owner sees fit. Of all types of
ownership a person can have in real estate, fee simple provides the
greatest amount of personal control.
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.
With FHA insurance, you can purchase a home with a low down payment from 3 percent to 5 percent of the FHA appraised value or the purchase price, whichever is lower. FHA mortgages have a maximum loan limit that varies depending on the average cost of housing in a given region. In general, the loan limit is less than what is available with a conventional mortgage through a lender.
A mortgage that is insured by the Federal Housing Administration (FHA). Also known as a government mortgage. With FHA insurance, you can purchase a home with a low down payment from 3 percent to 5 percent of the FHA appraised value or the purchase price, whichever is lower. FHA mortgages have a maximum loan limit that varies depending on the
average cost of housing in a given region. In general, the loan limit
is less than what is available with a mortgage through a lender.
Your sales contract should include a clause that allows you to examine the property you want to purchase within the 24 hours before closing. This walk-through, during which you will be accompanied by the real estate sales professional, is your chance to ensure that the seller has vacated the house and left behind whatever property was agreed upon. Make sure to check that all lights, appliances, and plumbing fixtures are in working order. You will also want to make sure that all conditions of the sales contract have been met. If they aren't, or you observe major problems, you have the right to delay the closing until the problems are corrected. One other option is to make sure money to correct the problems is placed in an escrow account at closing to cover the cost of repairs.
An index is a number to which the interest rate on an adjustable rate mortgage (ARM) is tied. It is generally a published number expressed as a percentage, such as the average interest rate or yield on U.S. Treasury bills. A margin is added to the index to determine the interest rate that will be charged on ARMs. This interest rate is subject to any caps associated with the mortgage. The interest rate changes on an ARM are tied to some type of financial index. Some of the most common type of indexed ARMs are:
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.
Borrowers will typically get a second mortgage to tap into the equity they've built in their home -- and use that for home improvements, debt consolidation, medical bills, or other purposes. You apply for a second mortgage with the same process you follow for a first mortgage. However, some of your closing costs may be less. When you have a first and second mortgage, you theoretically have
two loans, both requiring interest and principal payments.
A mortgage that is the primary lien against a property. A "first mortgage" is the primary lien against a property. The term is usually coined "first mortgage" only when a "second mortgage" is obtained on a property. A "second mortgage" is a lien that is subordinate to the first mortgage. Usually, the interest rates on second mortgages are slightly higher than the interest rates on a first mortgage. The amount of a second mortgage you can take out will depend on the equity you have built up in your home, the appraised value of your property, your credit history, and any other liens you may have against your property, such as a home equity line of credit. Borrowers will typically get a second mortgage to tap into the equity they've built in their home -- and use that for home improvements, debt consolidation, medical bills, or other purposes. You apply for a second mortgage with the same process you follow for a first mortgage. However, some of your closing costs may be less. When you have a first and second mortgage, you theoretically have
two loans, both requiring interest and principal payments.
The monthly payment due on a mortgage loan. The fixed installment includes payment of both principal and interest.
This type of adjustable-rate mortgage (ARM) maintains the same initial interest rate for the first three, five, seven, or 10 years of your loan, depending on the term you choose. Your interest rate then adjusts annually, and can move up or down as market conditions change. Be sure to ask your lender about the interest rate caps for both the annual adjustments and for the life of the loan.
A mortgage in which the interest rate does not change during the entire term of the loan. Fixed-rate mortgages, the most popular type of mortgage, offer the peace of mind that your interest rate will remain the same for as long as you have your loan. If you expect to live in your home for many years, having the same interest rate may be your key concern. If you decide that you like the stable, predictable payments of a fixed-rate loan, you have the option of choosing from a variety of repayment terms: 15, 20, and 30 years are the most common. Typically, the longer the term of the mortgage, the more interest you pay over the life of your loan. However, stretching out your repayment term means your monthly mortgage payments will be less than they would be with a comparable shorter-term mortgage. Lenders offer a wide array of fixed-rate mortgages:
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 mortgage debt. If you repeatedly do not make your mortgage payments on time, your
lender could sell your home and evict you from it in a legal procedure
called foreclosure. A foreclosure on your property can result in the
loss of your home and your good credit rating. Foreclosure is most
often a last resort effort that lenders will take if you repeatedly
don't make your mortgage payments. Before going to foreclosure, lenders
will work with you if you are facing financial hardships to come up
with repayment plans that will let you get back on track and remain
in your home.
The loss of money, property, rights, or privileges due to a breach of legal obligation.
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. |