Façade
The part of a building facing a street or courtyard.

Facilitator
A real estate professional who assists in a transaction but does not have a agency relationship with that party. Also known as transaction broker or intermediary.

Fair Credit Billing Act
A federal law that governs credit and charge card billing errors. If a credit or charge card company violates any provision, consumers can sue to recover damages.

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 Credit Reporting Act.
A federal law passed in 1971 that regulates the activity of credit bureaus. It is designed to prevent inaccurate or obsolete information from staying in a consumer's credit file and requires credit bureaus to have reasonable procedures for gathering, maintaining and disseminating credit information. The act also requires credit bureaus to show a consumer their credit file if the consumer presents proper identification, although the bureau reserves the right to charge a fee for doing so.

Fair Debt Collection Practices Act
A federal law which outlaws debtor harassment, and regulates collection agencies, original creditors' collection offices (if separate), and creditors' lawyers. The original creditor may be covered by state law.

Fair Debt Collection Practices Act.
A federal law passed in 1977 which outlaws debtor harassment and other types of collection practices. The act regulates collection agencies, original creditors who set up a separate office to collect debts, and lawyers hired by the creditor to help collect overdue bills. An original creditor--the company or individual that originally granted the credit--is not covered by the act, but may be covered by similar measures approved by state governments.

Fair Housing Act
Landmark federal law passed in 1965 and amended in 1988 that makes it illegal to deny rent or refuse to sell to anyone based on race, color, religion, sex or national origin. The 1988 amendment expanded the protections to include family status and disability.

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.

Fannie Mae
The official name of the Federal National Mortgage Association, it is a congressionally chartered, shareholder-owned company that buys mortgages from lenders and resells them as securities on the secondary mortgage market.

Fannie Mae (FNMA)
The Federal National Mortgage Association, which is a congressionally chartered, shareholder-owned company that is the nation's largest supplier of home mortgage funds. For a discussion of the roles of Fannie Mae, Freddie Mac (FHLMC), and Ginnie Mae (GNMA), see the Library.

Fannie Mae's Community Home Buyer's Program
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.

Farmer Home Administration (FmHA)
A U.S. Department of Agriculture agency that provides credit to farmers and rural residents.

Farmers Home Administration
A U.S. Department of Agriculture agency that provides credit to farmers and rural residents.

Fascia
A flat board that runs horizontally along the eaves of a roof, typically capping the ends of the roof rafters to give the roof edge a more finished look and provide a base for attaching gutters.

Federal Home Loan Mortgage Corporation
The Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac. The company buys mortgages from lending institutions, pools them with other loans and then sells shares to investors.

Federal Home Loan Mortgage Corporation (FHLMC)
The Federal Home Loan Mortgage Corporation is commonly known as Freddie Mac. The company buys mortgages from lending institutions, pools them with other loans, and sells shares to investors.

Federal Housing Administration (FHA)
This government agency operates a variety of home-loan programs. Its most popular is the Sec. 203(b), program, which provides low-rate mortgages to buyers who make a down payment as small as 3 percent.

Federal National Mortgage Association
Now officially dubbed Fannie Mae, this federally chartered agency buys mortgages from lending institutions, pools them with other loans and sells shares to investors.

Federal National Mortgage Association (FNMA)
Now officially dubbed Fannie Mae, this federally chartered agency buys mortgages from lending institutions, pools them with other loans, and sells shares to investors.

Federal Reserve Board
A group of economists and other experts who set the nation's monetary policy. Its chief tool to control inflation is the power to control interest rates.

Federal Reserve Board (FED)
A group of economists and other experts who set the nation's monetary policy. Its chief tool to control inflation is the power to control interest rates.

Federal style
The American home architecture style that evolved after the Revolutionary War. Details include bigger windows and a front doorway surrounded by glass and topped with an arched window.

Federal Trade Commission (FTC)
The government agency responsible for regulating a variety of companies and industries, from credit bureaus and collection agencies to timeshare operators and certain types of creditors.

Fee Simple
The greatest possible interest a person can have in real estate.

Fee simple defeasible
The owner of the property holds a fee simple title subject to certain conditions.

Fenestration
A term referring to the way windows are arranged in a building.

Feng shui
An ancient Chinese design philosophy in which the positioning and physical characteristics of the home are believed to affect the fortunes of the owner.

FHA loans
Mortgages that are insured by the Federal Housing Administration (FHA). The FHA operates loan plans for investors and purchasers of rural property, and provides low-rate mortgages to buyers who make a down payment as small as 3 percent.

FHA Mortgage
A mortgage that is insured by the Federal Housing Administration (FHA). Along with VA loans, an FHA loan will often be referred to as a government loan.

Fiduciary duty
The relationship of trust that buyers and sellers expect from a real estate agent. The term also applies to legal and business relationships.

Fill dirt
Soil brought in to solidify a finished foundation.

Filled land
An area where the ground has been raised by adding dirt, gravel or other fill material.

Financed closing costs
Closing costs that are added to the loan amount. This practice saves the borrower cash up front, but increases the borrower's monthly payment.

Finder fee
A fee in any amount that is paid to someone.

Finish grade
A finish that prepares a lot for landscaping.

Fire wall
A buffer composed of fire-resistant material.

Firm Commitment
A lender’s agreement to make a loan to a specific borrower on a specific property.

First Mortgage
The mortgage that is in first place among any loans recorded against a property. Usually refers to the date in which loans are recorded, but there are exceptions.

Fixed installment
The monthly payment on a home loan.

Fixed time
The specific weeks in a year an owner of a timeshare arrangement has access to accommodations.

Fixed-Rate Mortgage
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.

Flashing
Metal strips placed around chimneys, skylights, vents, windows, doors, beneath shingles and along seams in the roof to prevent water seepage.

Flat fee
A set fee charged by a broker instead of a commission.

Flat roof
A roof with a level surface.

Flip switch
An electrical switch operated by pushing the control knob up or down.

Float ball
A round or oval ball that floats on top of the water inside the tank of some toilets. When it reaches its highest position, it shuts off the flow of water.

Float floor drain
A drain that diverts water from the basement to a collection area. Water is then removed with a sump pump.

Floating slab
A concrete floor that is not connected to the foundation wall.

Floating wall
Walls built to withstand movement in the basement floor.

Flood certification
The process of determining whether a property is located within a known flood zone. If the property is in a flood zone, the lender will probably require federally provided flood insurance.

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 located along waterways.

Floor area ratio
The calculation of the floor area of all homes or buildings in a project. It is used in the planning and development of a site.

Florida rooms
Enclosed porches built on the side or back of a home.

Flue
A chimney, usually made of metal, designed to exhaust unwanted gasses and byproducts from a combustion appliance such as a furnace or water heater. A fireplace also has a flue to carry away smoke.

Flush door
A flush door has smooth surfaces, as opposed to a panel door, which has raised or recessed panels.

Flush valve seat
The seal in the passageway between a toilet tank and bowl. A stopper, flapper, or seat ball plugs the flush valve seat .When you flush a toilet, the seat is opened and water rushes through the flush valve into the bowl.

Footing
A concrete foundation that supports a structure.

Footings
Concrete foundations that support a structure.

For Sale By Owner (FSBO)
The owner acts as the agent to avoid paying a sales commission.

Forbearance
A course of action a lender may pursue to delay foreclosure or legal action against a delinquent borrower.

Foreclosure
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.

Forfeiture
The relinquishing of property rights by a delinquent borrower.

Foundation
The support structure of a house.

Four-way switch
A device that uses three switches to permit an appliance or outlet to be operated from all three switches.

Foyer
The entrance hall to a home or building.

Framing
The construction of the skeletal framework of a house.

Freddie Mac
The common name for the Federal Home Loan Mortgage Corporation (FHLMC), a congressionally chartered institution that buys mortgages from lenders and resells them as securities on the secondary mortgage market.

Free-market lots
Owners of these types of lots may hire any builder to construct their home.

Freehold estate
An estate in which ownership is for an indeterminate length of time.

French doors
Two adjoining doors inlaid with glass that open from the middle.

Front footage
The measurement of a parcel of land by the number of feet of street frontage.

Front-end ratio
A lender calculation that compares a borrower's monthly housing expense (principal, interest, taxes, and insurance) to gross monthly income.

Frontage
The portion of property that borders a roadway or body of water.

Full-service broker
A real estate broker who performs all transaction services including listing and selling.

Fully amortized adjustable-rate mortgage
A mortgage that amortizes, or pays down, the balance of a loan.

Functional obsolescence
A loss in value to an improvement resulting from functional problems caused by age or poor design.

Furnace
An enclosed heating device powered by coal, oil, propane or natural gas.

Furring strips
Strips of wood used to support walls, ceilings, or floors on irregular or masonry surfaces.