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F

Face value: The current principal balance on an income stream.
 
Factor: A funding source that specializes in funding accounts receivable.
 
Factoring: The purchase of a business' accounts receivable at a discount.

Fannie Mae: A common nickname for 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 Home Loan Mortgage Corporation (FHLMC, or Freddie Mac): This agency buys loans that are underwritten to its specific guidelines. These guidelines are an industry standard for residential conventional lending.

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.

Federal National Mortgage Association (FNMA, or Fannie Mae): This agency buys loans that are underwritten to its specific guidelines. These guidelines are an industry standard for residential conventional lending.

Fee Simple: Absolute ownership of real property.

FHA: Federal Housing Administration. 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.

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 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 limit is $169,050, however, FHA loan amount limits may vary by county.

FHLMC: Federal Home Loan Mortgage Corporation. This agency buys loans that are underwritten to its specific guidelines. These guidelines are an industry standard for residential conventional lending.

Fictitious name: A legal statement filed when a person uses a name other than his or her own to operate a business.

First Mortgage: A mortgage which 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: An interest rate which is fixed for the term of the loan.

Fixed-Rate Loans: Fixed-rate loans have interest rates that do not change over the life of the loan. As a result, monthly payments for principal and interest are also fixed for the life of the loan. Fixed-rate loans typically have 15-year or 30-year terms. With a fixed-rate loan, you will have predictable monthly mortgage payments for as long as you have the loan.

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

FNMA: 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.

Forbearance: The act by the lender of refraining from taking legal action on a mortgage loan that is delinquent.

Foreclosure: A legal proceeding in court to seize property given as security for a debt that is in default.

Freddie Mac: A common nickname for the Federal Home Loan Mortgage Corporation. This agency buys loans that are underwritten to its specific guidelines. These guidelines are an industry standard for residential conventional lending.

Funding source: An individual investor or an investment company that buys income streams.