FACADE

An exterior wall of a building or house.

FACE LIFT

Slang term for cosmetic changes to the appearance of a property which may improve the selling price.

FAIR CREDIT REPORTING ACT

A consumer protection law that regulates the disclosure and use of consumer credit information, establishes rules for credit reporting to consumer credit reporting agencies, and establishes procedures for a consumer to view his or her credit report and correct mistakes on it.

FAIR MARKET VALUE

The price that a buyer, willing but not compelled to buy, and a seller, willing but not compelled to sell, would agree on.

FANNIE MAE (FEDERAL NATIONAL MORTGAGE ASSOCIATION - FNMA)

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. It adds liquidity to the mortgage market by investing in home loans through the country.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)

A U.S. Government agency providing insurance to depositors of money into financial institutions up to a certain amount.

FEDERAL 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 loan underwriting but does not lend money or plan or construct housing.

FEE SIMPLE

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.

FHA COINSURED HOME LOAN

A loan (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 borrower's default.

FHA HOME LOAN

A mortgage home loan that is insured by the Federal Housing Administration (FHA). Also known as a government loan.

FIDUCIARY

A person charged by law and equity with a higher duty of care for another person. A person who, as a result of a relationship with another person, is required by law to place the other person's interests equal to or ahead of his own in all dealings involving that other person. The relationship is often created when the other person approaches the fiduciary to use the fiduciary's special skills and knowledge, for a fee, to benefit the other person. Real estate agents, lawyers, trustees, investment brokers etc. are often fiduciaries.

FIDUCIARY RELATIONSHIP

A relationship of trust and confidence between two people in which one person (the fiduciary) holds much more power, knowledge or skill than the other and is, therefore, held by the law to a higher standard of conduct.

FINANCE CHARGE

The total cost, in dollars, of a loan or mortgage over its life, including appraisal/application/commitment fees, financing insurance, interest paid over the life of the loan.

FIRM COMMITMENT

A lender's agreement to make a loan to a specific borrower on a specific property.

FIRM OFFER

An offer to purchase delivered to the potential Vendor by a potential Purchaser who will not negotiate any changes to the offer.

FIRST LIEN

The registered legal claim which stands first in line to enjoy the proceeds of a sale of the property. Liens generally are ordered according to time or registration but various statutes allow some liens (realty taxes) to jump to the head of the line.

FIRST MORTGAGE (ALSO REFERRED TO AS A HOME LOAN)

A home loan that is the primary lien against a property.

FIXED INSTALLMENT

The monthly payment due on a mortgage loan. The fixed installment includes payment of both principal and interest.

FIXED PERIOD ARM

Provides a fixed rate for 3, 5, 7 or 10 years then adjusts annually based on a financial index for the remaining loan term.

FIXED RATE LOAN

A mortgage in which the interest rate does not change during the entire term of the loan.

FIXTURE

Personal property that becomes real property when attached in a permanent manner to real estate (such as a lighting fixture or an in-ground spa).

FLIP

The rapid turnover of a piece of property by one person who buys it for a certain price then sells it soon thereafter for more.

FLOOD INSURANCE

Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas.

FLOOD PLAIN

Flat, flood-prone areas often located along or adjacent to waterways .

FLOOR

The lowest the interest rate on a variable or adjustable rate mortgage may go.

FORCED SALE

The marketing of a property as a result of some outside influence, such as bankruptcy, where the price obtained might not be optimum.

FOR SALE BY OWNER (FSBO)

Indication that the owner of a property is attempting to find a purchaser for her property on her own, without employing an agent.

FORECLOSURE

The legal process by which a borrower's interest in mortgaged property is taken because of a default on the loan. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.

FORFEITURE

The loss of money, property, rights, or privileges due to a breach of legal obligation.

401(K)/403(B)

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.

401(K)/403(B) LOAN

Some administrators of 401(k)/403(b) plans allow for loans against the monies accumulated in these plans - monies must be repaid to avoid serious penalty charges.

FREDDIE MAC (FEDERAL HOME LOAN MORTGAGE CORPORATION)

A federal agency within the Department of Housing and Urban Development (HUD), which insures residential mortgage loans made by private lenders and sets standards for underwriting mortgage loans.

FREEHOLD

As opposed to leasehold. A right to or interest in property.

FRONT FOOT

A measurement of the property line which runs along the side of a street.

FUNCTIONAL OBSOLESCENCE

The loss of use or value of an asset due to a change in the market demands. A property in Buffalo with no furnace may be considered to be functionally obsolete and, therefore, difficult to sell.