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Fannie Mae, Federal National Mortgage Association (FNMA) -- A corporation created by Congress that purchases and sells conventional, FHA and VA residential mortgages. Makes mortgage money more available and affordable.

Farmers Home Administration (FmHA) -- An organization that finances loans for farmers and other qualified borrowers who are unable to obtain loans elsewhere.

Federal Housing Administration (FHA) -- A division of the Department of Housing and Urban Development (HUD) which insures residential mortgage loans made by private lenders and sets standards for underwriting mortgages. FHA loans are insured by the FHA and open to all qualified homebuyers for moderately priced homes almost anywhere in the country. Borrowers need to be able to put 3-4 percent down, and higher qualifying ratios make it easier to qualify for FHA loans. FHA mortgage insurance is a way of insuring an FHA loan. It requires a small fee (up to 3.8 percent of the loan amount ) paid at closing or a portion of the fee added to each monthly payment. Also requires an annual fee of 0.5 percent of the current loan amount, paid in monthly installments . The lower the down payment, the more years the fee must be paid.

First mortgage -- The mortgage which is the primary lien against a property.

Fixed-rate mortgage -- A mortgage with a set interest rate for the entire loan, regardless of interest rate fluctuations. This creates consistent, predictable payments, but it's not always the cheapest option.

Foreclosure -- A legal process through which the lender forces the sale (or repossession) of a mortgaged property because the borrower has defaulted on (not met the terms of) the mortgage.

Freddie Mac, Federal Home Loan Mortgage Corporation (FHLMC) -- A quasi-governmental agency that purchases conventional mortgage loans from insured depository institutions (savings and loans) and HUD-approved mortgage bankers.

Front-end ratio -- Your prospective monthly mortgage payments divided by your gross monthly income. This comes out to a percentage, and a lender uses this percentage to get an idea of how much of your income will be going to pay your loan. If they like the number (say, below 29 percent) then they will be more inclined to sell you the loan.

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