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."
