F

Fair, Isaac and Co.

The company that invented credit-scoring software.

Fannie Mae

This agency buys loans that are underwritten to its specific guidelines. These guidelines are an industry standard for residential conventional lending.

FDIC

See Federal Deposit Insurance Corporation.

Federal Deposit Insurance Corporation (FDIC)

Independent deposit insurance agency created by Congress to maintain stability and public confidence in the nation's banking system.

Federal Housing Administration (FHA)

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.

Fee Simple

Absolute ownership of real property.

FHA

See Federal Housing Administration.

FHA Loans

Fixed- or adjustable-rate loans insured by the U.S. Department of Housing and Urban Development. FHA loans are designed to make housing more affordable, particularly for first-time homebuyers. FHA loans typically permit borrowers to buy a home with a lower down payment than conventional loans. With FHA insurance, eligible buyers can purchase a home with a down payment of as little as 3% of the appraised value or the purchase price-whichever is lower. FHA borrowers typically are required to participate in a face-to-face meeting with their lender or a government approved mortgage counselor prior to closing on a new mortgage loan. The current FHA loan limits vary depending on home type and home location. To find the most recent limits for your home, consult the FHA Maximum Mortgage Limits web page.

FICO

The most common credit-scoring model used by lenders, it is also known as a Fair, Isaac score. Your FICO can range from 200 to 900. According to this model, the higher your score, the less likely you are to default on your loan.

Filing Fees

The amount charged by public officials in your area for recording your mortgage and other documents.

Finance Charge

Your finance charge is the total of all the interest you would pay over the entire life of the loan, assuming you kept the loan to maturity, as well as all prepaid finance charges. If you pre-pay any principal during your loan, your monthly payments remain the same, but your total finance charge will be reduced.