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. See also HomeStyle Standard Mortgage, HomeStyle Remodeler, HomeStyle Community Mortgage and HomeStyle Consumer Energy Loan
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."
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