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.
HOMEKEEPER SM 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.
HOMEOWNER'S 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".
|
