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 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 Housing Act
Landmark federal law that makes it illegal to refuse to rent or sell to anyone based on race, color, religion, sex, or national origin. The 1988 amendments to the act 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 (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. This agency buys loans that are underwritten to its specific guidelines. These guidelines are an industry standard for residential conventional lending.

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's Home Administration (FmHA)
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 Deposit Insurance Corporation (FDIC)
Independent deposit insurance agency created by Congress to maintain stability and public confidence in the nation's banking system. 

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)
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 or plan or construct housing.

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 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 that regulates companies and industries, from credit bureaus and collection agencies to timeshare operators and some creditors. National headquarters: Sixth and Pennsylvania Avenue NW, Washington, D.C. 20580. Phone: (202) 326-2222.

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.

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.

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 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.

field changes
Modifications made on the construction site that do not match blueprints.

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.

fill-type insulation
Loose insulating material which is applied by hand or blown into wall spaces mechanically.

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's 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 Interest
set at the time of purchase, reflects interest market conditions at the time the mortgage is written, and is locked in for the life of the loan 

fixed-rate mortgage
A mortgage in which the interest rate does not change during the entire term of the loan.

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

fixer-upper
A house that needs refurbishment or remodeling and usually sells at a below-market price.

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 paint
A type of paint that contains a high portion of pigmentand dries to a flat or lusterless finish.

flat roof
A roof with a level surface.

flat skylight
Any skylight which has only enough pitch to carry off rain water or water from melting snow. 

flex duct
A flexible rounded duct, made of spiral wire covered with plastic or heavy cloth, for use in transfer of air in heating, cooling and ventilation systems and available in various diameters. 

flexible metal conduit
Electrical conduit of spirally wound steel strip.

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

float arm
A wire-like device in some types of toilets that attaches a float ball to the ball cock.

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. Typically not covered under standard hazard insurance.

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.

floor beam
A transverse beam or girder placed at the panel points of a span to support the stringers that carry the floor. 

floor drain
A plumbing fixture used to drain water from floors into the plumbing system. Such drains are usually located in the laundry and shower stalls. 

floor joists
Framing pieces which rest on outer foundation walls and interior beams and girders. 

flooring tiles
Concrete or clay tiles set in cement, mortar or other adhesive. For a more sound absorbent, heat-insulating, decorative or comfortable walking surface, vinyl, cork, rubber, asphalt or plastic tiles are used.

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.

flue lining
The tile or pipe inside a chimney.

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

flush tank
The reservoir from which a toilet is flushed with water.

flush valve
The passageway between a toilet tank and bowl. When you flush a toilet, water rushes through the flush valve into the bowl.

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.

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

forced air
Hot or cold air blown from a heating or air-conditioning unit by means of a fan or blower. 

forced air furnace
A heating unit fitted with a fan or blower to circulate the heated air.

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.

Formica
The trade name for a hard, laminated plastic sheeting used for table, sink and countertops or for wall or cabinet door covering. It is extremely resistant to damage. Generic term is Plastic Laminate.

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.

For Sale By Owner (FSBO)
The seller acts as the selling agent and handles the sales process directly with the buyer or buyer's agent. In this situation, the seller does not pay a listing commission.

foyer
The entrance hall to a home or building.

frame construction
The building of houses, apartments, etc. using wood framing lumber.

framing
The construction of the skeletal framework of a house.

Freddie Mac
A common nickname for the Federal Home Loan Mortgage Corporation. 

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-gloss
A painting term for the highest possible grade of gloss. 

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. 

fuse
A small device in an electrical circuit that is designed to shut down the circuit in the event of an electrical overload or short circuit.

fuse box
A term sometimes applied to a distribution fuse box when it is enclosed in a box.

401(k)/403(b)
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. Loans against 401K plans are an acceptable source of down payment for most types of loans.