Glossary of Mortgage Terms

The Federal Housing Administration backs the FHA 203(b) loan, which is the most common type of government-backed mortgage. You can buy a home with as little as 3.5% down.

You can buy or refinance a fixer-upper with an FHA 203(k) loan, which is a government-backed mortgage that lets you combine the costs of repairs and renovations into one loan.

Before a lender will approve a loan, the Federal Housing Administration (FHA) requires an appraisal of the property. This appraisal finds out the home's market value and makes sure it meets minimum health, safety, and structural standards.

An FHA loan is a government-backed mortgage that lets people with less-than-ideal credit buy a home with as little as 3.5% down.

An FHA refinance replaces your current mortgage with a new loan that is backed by the Federal Housing Administration. This gives homeowners a way to lower their monthly payments, change the terms of their loan, or get access to their home equity.

An FHA streamline refinance is a simple way for homeowners with an existing FHA loan to get a new mortgage with a lower interest rate. This can often be done without an appraisal or proof of income.

An FHA-approved condo is a condo unit or project that meets the Federal Housing Administration's safety, financial, and legal standards. This means that it can get FHA-insured mortgage financing.

A fixture in real estate is a piece of personal property that is permanently attached to a home or piece of land and goes with the property when it is sold.

Foreclosure is a legal process in which a mortgage lender takes ownership of a property after the borrower fails to make the required loan payments. This usually means that the home is sold at public auction.

Freddie Mac, officially the Federal Home Loan Mortgage Corporation (FHLMC), is a government-sponsored enterprise that buys mortgages from lenders and sells them as investments to keep home loan money flowing nationwide.