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VWXYZhazard insurance
Insurance coverage that compensates for
physical damage to a property from fire,
wind, vandalism, or other hazards.
Home Equity Conversion Mortgage (HECM)
A special type of mortgage that enables
older home owners to convert the equity they
have in their homes into cash, using a
variety of payment options to address their
specific financial needs. Unlike traditional
home equity loans, a borrower does not
qualify on the basis of income but on the
value of his or her home. In addition, the
loan does not have to be repaid until the
borrower no longer occupies the property.
Sometimes called a reverse mortgage.
home equity line of credit
A mortgage loan, which is usually in a
subordinate position, that allows the
borrower to obtain multiple advances of the
loan proceeds at his or her own discretion,
up to an amount that represents a specified
percentage of the borrower's equity in a
property.
home inspection
A thorough inspection that evaluates the
structural and mechanical condition of a
property. A satisfactory home inspection is
often included as a contingency by the
purchaser. Contrast with appraisal.
HomeKeeperSM
Fannie Mae's adjustable-rate conventional
reverse mortgage, which allows older
homeowners to borrow against the value of
their homes and receive the proceeds
according to the payment option they select.
The amount available is based on the number
of borrowers and their ages and the adjusted
property value. Anyone 62 years or older who
either owns his or her own home free and
clear or has very low mortgage debt is
eligible.
homeowners' association
A nonprofit association that manages the
common areas of a planned unit development (PUD)
or condominium project. In a condominium
project, it has no ownership interest in the
common elements. In a PUD project, it holds
title to the common elements.
homeowner's insurance
An insurance policy that combines personal
liability insurance and hazard insurance
coverage for a dwelling and its contents.
homeowner's warranty (HOW)
A type of insurance that covers repairs to
specified parts of a house for a specific
period of time. It is provided by the
builder or property seller as a condition of
the sale.
HomeStyle® Mortgage Loan
A mortgage that enables eligible borrowers
to obtain financing to remodel, repair, and
upgrade their existing homes or homes that
they are purchasing. The financing takes the
form of a conventional second mortgage or a
Federal Housing Administration (FHA) Section
203(k) first mortgage.
housing expense ratio
The percentage of gross monthly income that
goes toward paying housing expenses.
HUD median income
Median family income for a particular county
or metropolitan statistical area (MSA), as
estimated by the Department of Housing and
Urban Development (HUD).
HUD-1 statement
A document that provides an itemized listing
of the funds that are payable at closing.
Items that appear on the statement include
real estate commissions, loan fees, points,
and initial escrow amounts. Each item on the
statement is represented by a separate
number within a standardized numbering
system. The totals at the bottom of the
HUD-1 statement define the seller's net
proceeds and the buyer's net payment at
closing. The blank form for the statement is
published by the Department of Housing and
Urban Development (HUD). The HUD-1 statement
is also known as the "closing statement" or
"settlement sheet."