Valley Real Estate
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- 401(k)/403(b) investment plan
- 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 you have accumulated in these plans -- monies must be repaid to avoid serious penalty charges.
- 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.
- fair housing laws
- The term fair housing came from a political movement to outlaw discrimination in the rental or purchase of homes and a broad range of other housing-related transactions, such as advertising, mortgage lending, homeowner's insurance and zoning. Later, at the urging of President Lyndon Baines Johnson, Congress passed the federal Fair Housing Act (Title VIII of the Civil Rights Act of 1968) in April 1968.
When the Fair Housing Act was first enacted in 1968 it prohibited discrimination on the basis of race, color, religion and national origin. Sex was added to the list of protected classes in 1974. Disability and familial status (the presence or anticipated presence of children under 18 in a household) were added in 1988. In Ohio, military status, was added in 2008. In certain circumstances, the law allows limited exceptions for discrimination based on sex, religion, or familial status.
The United States Department of Housing and Urban Development is the cabinet agency with the statutory authority to administer and enforce the Fair Housing Act. The Secretary of Housing and Urban Development has delegated fair housing enforcement and compliance activities to HUD's (FHEO) and HUD's Office of General Counsel.
- Fair Housing Statement (as it applies in Ohio)
- Ohio Revised Code 4735.55 (Revision Effective 3/25/2008)
It is illegal, pursuant to the Ohio Fair Housing Law, Division (H) of Section 4112.02 of the Ohio Revised Code and the Federal Fair Housing Law, 42, U.C.S.A. 3601, to refuse to sell, transfer, assign, rent, lease, sublease, or finance housing accommodations, refuse to negotiate for the sale or rental of housing accommodations, or otherwise deny or make unavailable housing accommodations because of race, color, religion, sex, familial status as defined in Section 4112.01 of the Ohio Revised Code, ancestry, military status as defined in that section, disability as defined in that section, or national origin or to so discriminate in advertising the sale or rental of housing, in the financing of housing, or in the provision of real estate brokerage services.
It is also illegal, for profit, to induce or attempt to induce a person to sell or rent a dwelling by representations regarding the entry into the neighborhood of a person or persons belonging to one of the protected classes.
- fair market value
- 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.
- See Also ►
- fair market rent
- A term in real estate that indicates the amount of money that a given property would command, if it were open for leasing at the moment.
Fair market rent is an important concept both in the Housing and Urban Development's ability to determine how much of the rent is covered by the government for those tenants who are part of Section 8, as well as by other governmental institutions.
Fair market rent is sometimes used by assessors to determine property tax values.
- Fannie Mae
- See Federal National Mortgage Association
- Fannie 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.
- Fannie 97®
- 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.
- Founded in 1956 as Fair Isaac by Bill Fair and Earl Isaac. They developed the FICO scores, a measure of credit risk. FICO scores are available through all of the major consumer reporting agencies : Equifax; Experian; TransUnion; and PRBC. FICO is a registered trademark of the Fair Isaac Corporation.
FICO scores propose to show the likelihood that a borrower will default on a mortgage or consumer loan. Another score, called the BNI, is used to determine the likelihood that a borrower will declare bankruptcy. Each consusmer reporting agency also calculates a credit score using its own model. Scores may differ by 50 to 100 points or more for the same borrower. The score Fair Isaac sells to borrowers is their consumer credit score.
- Federal Housing Administration (FHA)
- is 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, nor plan or construct housing.
- See >> Real Estate Guide: Your Mortgage -
- Federal Housing Finance Agency (FHFA).
- Authorized by the Housing and Economic Recovery Act of 2008 and formed by a legislative merger of the Office of Federal Housing Enterprise Oversight (OFHEO), the Federal Housing Finance Board (FHFB) and the U.S. Department of Housing and Urban Development (HUD) government-sponsored enterprise (GSE) mission team. FHFA regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks.
FHFA's mission is to promote a stable and liquid mortgage market, affordable housing and community investment through safety and soundness oversight of Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
FHFA publishes quarterly a national . There is also a that will estimate the value of your home based on the average home price appreciation for your area.
- Visit ►
- Federal Home Loan Mortgage Corporation
- See Freddie Mac.
- Federal National Mortgage Association (FNMA) (Fannie Mae)
- is a New York Stock Exchange government sponsored 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.
Fannie Mae's primary method for making money is by charging a guarantee fee on loans that they have securitized into mortgage-backed security bonds (MBSs). Investors, or purchasers of Fannie Mae MBSs, are willing to let Fannie Mae keep this fee in exchange for assuming the credit risk. In other words, Fannie Mae guarantees that the principal and interest on the underlying loan will be paid regardless of whether the borrower actually repays.
Fannie Mae receives no direct government funding or backing, and it has looser restrictions placed on its activities than normal financial institutions. For example, it is allowed to sell mortgage-backed securities with half the capital backing them up than is required by other financial institutions.
Fannie Mae securities carry no government guarantee of being repaid. This is explicitly stated in the law that authorizes GSEs, on the securities themselves, and in many public communications issued by Fannie Mae.
- Federal Reserve System
- (also the Federal Reserve ; informally The Fed ) ()
The central banking system of the United States. The history of central banking in the United States begins with the Bank of the United States, which received its charter in 1791 from the U.S. Congress -- a charter signed by President George Washington. The Bank's charter was designed by Secretary of the Treasury Alexander Hamilton, modeling it after the Bank of England, the British central bank.
The Federal Reserve System is a quasi-governmental/quasi-private banking system composed of (1) the presidentially-appointed Board of Governors of the Federal Reserve System in Washington, D.C.; (2) the Federal Open Market Committee; (3) 12 regional Federal Reserve Banks located in major cities throughout the nation acting as fiscal agents for the U.S. Treasury, each with their own nine-member board of directors; (4) numerous private U.S. member banks, which subscribe to required amounts of non-transferable stock in their regional Federal Reserve Bank; and (5) various advisory councils.
The Federal Reserve System controls the size of the money supply by conducting open market operations, in which the Federal Reserve lends or purchases specific types of securities with authorized participants, known as primary dealers. All open market operations in the United States are conducted by the Open Market Desk at the Federal Reserve Bank of New York, with an aim to making the federal funds rate as close to the target rate as possible. For a detailed look at the process by which changes to a reserve account held at the Fed affect the wider monetary supply of the economy, see money creation.
- fee simple
- The greatest possible interest a person can have in real estate.
- fee simple estate
- 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 mortgage
- 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.
- FHA mortgage or FHA loan
- A federal assistance mortgage loan in the United States insured by the Federal Housing Administration. The loan may be issued by federally qualified lenders.
FHA loans have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford. The program originated during the Great Depression of the 1930s, when the rates of foreclosures and defaults rose sharply, and the program was intended to provide lenders with sufficient insurance. Some FHA programs were subsidized by government, but the goal was to make it self-supporting, based on insurance premiums paid by borrowers.
Over time, private mortgage insurance (PMI) companies came into play, and now FHA primarily serves people who cannot afford a conventional down payment or otherwise do not qualify for PMI insurance.
- fiduciary duty
- In real estate a fiduciary duty is the highest standard of care imposed on an agent in the legal relationship that exists between the agent and the client , or 'principal.' This legal relationship is governed by an area of law called 'agency.'
A fiduciary agent is expected to be extremely loyal to the principal. A fiduciary must not put personal interests before the duty, and must not profit from the position as a fiduciary, unless the principal consents. The fiduciary relationship is highlighted by good faith, loyalty and trust. The word itself originally comes from the Latin fides, meaning faith.
When a fiduciary duty is imposed, the law requires a stricter standard of behavior than the comparable duty of care in common law. It is said the fiduciary has a duty to never be in a situation where personal interests and fiduciary duty conflict, a duty to never be in a situation where a fiduciary duty conflicts with another fiduciary duty, and a duty never to profit from their fiduciary position without express knowledge and consent. A fiduciary cannot have a conflict of interest.
- finder's fee
- A fee or commission paid to a mortgage broker for finding a mortgage loan for a prospective borrower.
- firm commitment
- A lender’s agreement to make a loan to a specific borrower on a specific property.
- first mortgage
- A mortgage that is the primary lien against a property.
- first time buyer
- Generally, lenders and the IRS define a first-time home buyer as someone who has not owned any real estate -- whether a personal residence, vacation home or investment property -- during the past three years. They will use the title transfer date from the HUD-1 statement of your last sale (if any) to make certain exactly when ownership was relinquished.
- fixed installment
- The monthly payment due on a mortgage loan. The fixed installment includes payment of both principal and interest.
- fixed-rate mortgage (FRM)
- A mortgage loan where the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or "float." Other forms of mortgage loan include interest only mortgage, graduated payment mortgage, adjustable rate mortgage, negative amortization mortgage, and balloon payment mortgage. Please note that each of the loan types above except for a straight adjustable rate mortgage can have a period of the loan for which a fixed rate may apply. A Balloon Payment mortgage, for example, can have a fixed rate for the term of the loan followed by the ending balloon payment. Loans for which the rate is fixed for less than the life of the loan may be called hybrid adjustable rate mortgages (in the United States).
- Personal property that becomes real property when attached in a permanent manner to real estate.
- A term which refers to the practice of buying an asset and quickly reselling (flipping) it for profit. The term is often applied to the practice of buying real estate at below market value, making needed repairs and improvements to the property, and reselling it for a higher price (generally near market value), thus making a profit.
- flood insurance
- Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas.
- forcible entry and detainer
- See: Eviction
- The lender agrees not to take legal action if a homeowner arranges to pay the amount owed on a mortgage by a specified date.
- The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. In Ohio, this must be a judicial process involving a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.
If your faced with foreclosure in Ohio, website encourages you to take the following steps to help you stay in your home:
- Contact your at the first sign that you may have difficulty in making your mortgage payment. Explain your circumstances and ask to participate in a workout resolution. Even if the foreclosure process has started, it is not too late to reach out to your servicer.
- While working with your servicer, also contact a —to discuss your options.
- See ► Real Estate Guide:
- The loss of money, property, rights, or privileges due to a breach of legal obligation.
- Freddie Mac
- The (" FHLMC "), is a government sponsored enterprise (GSE) sponsored by the United States Government. As a GSE, it is a privately-owned corporation authorized to make loans and loan guarantees. It is not backed or funded by the US Government, nor do the securities it issues benefit from any government guarantee or protection.
The FHLMC was created in 1970 to expand the secondary market for mortgages in the United States. Along with other GSEs, Freddie Mac buys mortgages on the secondary market, pools them and sells them as mortgage-backed securities to investors on the open market.
Along with other GSEs (such as Fannie Mae), Freddie Mac purchases mortgages and related securities, and then issue securities and bonds in financial markets backed by those mortgages in secondary markets
- full re-conveyance
- A document prepared by a trustee, when an obligation secured by a deed of trust, or mortgage, is paid back in full. Once recorded, this re-conveyance eliminates the lien from the property’s title.
- fully amortized ARM
- 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.