Fannie Mae - The official name of the Federal National Mortgage Association, this agency buys loans that are underwritten to its specific guidelines. These guidelines are an industry standard for residential conventional lending.

Federal Housing Association - 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. The FHA sets standards for construction and underwriting, however it does not lend money or plan or construct housing.

Federal Housing Association (or FHA) Mortgage - A low down payment loan that is insured against loss by the Federal Housing Administration. The borrower pays an insurance premium and the loan amount is usually limited.

Federal Reserve Board - The 7-member Board of Governors that oversees Federal Reserve Banks, establishes monetary policy (interest rates, credit, etc.), and monitors the economic health of the country. Its members are appointed by the President subject to Senate confirmation, and serve 14-year terms. also called the Fed.

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. Loan charges include origination fees, discount points, mortgage insurance, and other applicable charges. If the seller pays any of these charges, they cannot be included in the finance charge. If you pre-pay any principal during your loan, your monthly payments remain the same, but your total finance charge will be reduced.

Financial Statement - The financial summary of a person's or a company's financial situation. The statement includes a person's assets and liabilities for a given date and a company's Profit and Loss Statement for a given date.

FICO (or Fair Isaac & Co) - 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.

First Mortgage - A mortgage that is in first lien position, taking priority over all other liens. In the case of a foreclosure, the first mortgage will be repaid before any other mortgages.

Fixed Rate Mortgage - An interest rate that is fixed for the term of the loan, 15 year and 30 year loans are the most common types. Also called a traditional loan.

Flood Certification Fee - Federal law requires that you obtain flood hazard insurance if your property lies in a flood zone. A flood determination company is used to identify if your house is located in a flood zone. The flood certification fee covers the cost. If your house is located in a flood zone, you will be required to purchase Flood Insurance.

Flood Insurance - Insurance that compensates for physical damage to a property by flood. Typically not covered under standard hazard insurance.

Foreclosure (or Repossession) - Legal process by which a mortgaged property may be sold to pay off a mortgage loan that is in default.

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