hazard 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.
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."
