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Glossary of Real Estate terms used by Baja Real Estate Group's website.

There are 367 Real Estate entries in this glossary. Complete with definitions.
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F

Term Definition
Fair Credit Reporting Act

Federal act to ensure that credit bureaus are fair and accurate protecting the individual's privacy rights enacted in 1971 and revised in October 1997.

Fair Housing Act

A law that prohibits discrimination in all facets of the home buying process on the basis of race, color, national origin, religion, sex, familial status, or disability.

Fair Market Value

The hypothetical price that a willing buyer and seller will agree upon when they are acting freely, carefully, and with complete knowledge of the situation.

Familial Status

HUD uses this term to describe a single person, a pregnant woman or a household with children under 18 living with parents or legal custodians who might experience housing discrimination.

Fannie Mae

Federal National Mortgage Association (FNMA); a federally-chartered enterprise owned by private stockholders that purchases residential mortgages and converts them into securities for sale to investors; by purchasing mortgages, Fannie Mae supplies funds that lenders may loan to potential homebuyers. Also known as a Government Sponsored Enterprise (GSE).

FHA

Federal Housing Administration; established in 1934 to advance homeownership opportunities for all Americans; assists homebuyers by providing mortgage insurance to lenders to cover most losses that may occur when a borrower defaults; this encourages lenders to make loans to borrowers who might not qualify for conventional mortgages.

FICO Score

FICO is an abbreviation for Fair Isaac Corporation and refers to a person's credit score based on credit history. Lenders and credit card companies use the number to decide if the person is likely to pay his or her bills. A credit score is evaluated using information from the three major credit bureaus and is usually between 300 and 850.

Fideicomiso

Contract trust between two parties by which one of them transfers ownership of its goods so that it is managed to the benefit of a third party. In 1973 there was a constitutional amendment called Foreign Investment Law which allowed foreigners to purchase land in the borders and coasts by way of a Trust through a Mexican Bank (Fideicomiso). This trust assures the buyer all the rights and privileges of Ownership and can be sold, inherited, leased, or transferred at any time. Since 1994 the Foreign Investment Law stipulates that the Fideicomiso must be to a 50 year term with a 50 year renewal anytime with a petition. If you have purchased a property with a Bank Trust you can stay with the remaining time of that trust or you can apply to the Ministry of Foreign Affairs for a new 50 + 50 year period.

First Mortgage

The mortgage with first priority if the loan is not paid.

Fixed Expenses

Payments that do not vary from month to month.

Fixed-Rate Mortgage

A mortgage with payments that remain the same throughout the life of the loan because the interest rate and other terms are fixed and do not change.

Fixture

Personal property permanently attached to real estate or real property that becomes a part of the real estate.

Float

The act of allowing an interest rate and discount points to fluctuate with changes in the market.

Flood Insurance

Insurance that protects homeowners against losses from a flood; if a home is located in a flood plain, the lender will require flood insurance before approving a loan.

FM3

The Long-Term Non-Immigrant Visa. Mexico operates what is known as a FM3 Visa. The FM3 visa is a renewable long term (more than 6 months) permit which gives non-immigrant temporary residency status to the holder. This means that it gives a person the right to live in Mexico (under the terms set out in the visa) but it does not lead to, and cannot be converted to, a visa leading to permanent residency.

FMT

The Short-Term Non-Immigrant Visa. Short term visas are intended for visitors to Mexico on short term (6 months or less) visits; usually tourists and short-term business trips. For trips of longer than 6 months, a non-immigrant or immigrant visa should be considered -- see the sections below for details. FMT visas are issued by airlines and are also available at ports of entry

Forbearance

A lender may decide not to take legal action when a borrower is late in making a payment. Usually this occurs when a borrower sets up a plan that both sides agree will bring overdue mortgage payments up to date.

Foreclosure

A legal process in which mortgaged property is sold to pay the loan of the defaulting borrower. Foreclosure laws are based on the statutes of each state.

Freddie Mac

Federal Home Loan Mortgage Corporation (FHLM); a federally chartered corporation that purchases residential mortgages, securitizes them, and sells them to investors; this provides lenders with funds for new homebuyers. Also known as a Government Sponsored Enterprise (GSE).

Front End Ratio

A percentage comparing a borrower's total monthly cost to buy a house (mortgage principal and interest, insurance, and real estate taxes) to monthly income before deductions.

FSBO (For Sale by Owner)

A home that is offered for sale by the owner without the benefit of a real estate professional.