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. 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."
|
