GLOSSARY

This glossary is Alphabetical please choose your letter below.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

 

h

Hard Equity Lender
See Hard Money Lender

 

Hard Money Lender
Equity lenders who base their funding decisions on the unencumbered property value and its salability. They do not calculate debt ratio and usually do not take into account the borrower's credit and income. The combined loan-to-value ratio is usually less than 65%. Funding can be very fast.

 

Hazard Insurance
A form of insurance in which the insurance company protects the insured from specified losses, such as fire windstorm and the like.

 

High Ratio Loan
Mortgage loans in excess of 80 percent of the loan amount divided by the lower of the sales price or appraised value.

 

Historical Scenario
The assumption that the index value to which the rate on an ARM is tied follows the same pattern as in some prior historical period.

 

Home Equity Line of Credit ( HELOC )
A mortgage set up as a line of credit against which a borrower can draw up to a maximum amount, as opposed to a loan for a fixed dollar amount.

 

Home Equity Conversion Mortgage ( HECM )
A reverse mortgage program administered by FHA.

 

Home Equity Line
Same as HELOC

 

Home Equity Loan
A revolving line of credit or loan based on the equity in the mortgagor's house. The property is the security for the loan, which is usable for any purpose. Typically takes the form of a second mortgage.

 

Home Inspection
A professional inspection of a home to review the condition of the property. The inspection should include an evaluation of the plumbing, heating and cooling systems, roof, wiring, foundation and pest infestation.

 

Home Keeper
A reverse mortgage program administered by Fannie Mae.

 

Homebuyer Education Learning Program ( HELP )
An educational program from the FHA that counsels people about the home buying process; HELP covers topics like budgeting, finding a home, getting a loan, and home maintenance; in most cases, completion of the program may entitle the homebuyer to a reduced initial FHA mortgage insurance premium-from 2.25% to 1.75% of the home purchase price.

 

Homeowners Association Dues
The fees imposed by a condominium or homeowners' association for maintenance of common areas.

 

Homeowners Equity
See equity.

 

Home Inspection
An examination of the structure and mechanical systems to determine a home's safety. Intended to make the potential homebuyer aware of any repairs that may be needed.

 

Home Warranty
Offers protection for mechanical systems and attached appliances against unexpected repairs not covered by homeowner's insurance. Coverage extends over a specific time period and does not cover the home's structure.

 

Homeowner's Insurance
An insurance policy that .combines protection against damage to a dwelling and Is contents with protection against claims of negligence )r inappropriate action that result in someone's injury or )property damage.

 

Home Mortgage Disclosure Act ( HMDA )
A requirement by the Federal Reserve that depository institutions disclose the geographic distribution of their mortgage and home improvement loans.

 

Homeowner's Policy
A multiple peril insurance policy available to owners of private dwellings which covers the dwelling and its contents, as well as personal liability.

 

Homeowner's Protection Plan
An FHA plan purporting to protect homebuyers against property defects.

 

Housing Bank
A government-owned or affiliated housing lender. With minor exceptions, the U.S. government does not directly lend to consumers, but housing banks are widespread in many developing countries.

 

Housing Counseling Agency
Provides counseling and assistance to individuals on a variety of issues, including loan default, fair housing, and home buying.

 

Housing Expense
The sum of mortgage payment, hazard insurance, property taxes, and homeowner association fees. Same as PITI and "monthly housing expense".

 

Housing Expenses-to-Income Ratio
Also known as housing expense ratio. The ratio expressed as a percentage, which results when a borrower's housing expenses are divided by his and/or her net effective income (FHA / VA loans) or gross monthly income (conventional loans). Also see Debt-to-Income Ratio.

 

Housing Investment
The amount invested in a house, equal to the sale price less the loan amount.

 

HUD
The U.S. Department of Housing and Urban Development; established in 1965, HUD works to create a decent home and suitable living environment for all Americans; it does this by addressing housing needs, improving and developing American communities, and enforcing fair housing laws.

 

HUD-1 Statement ( HUD1 )
Also known as the "settlement sheet" or HUD-1 form. The HUD-1 itemizes all closing costs. The HUD-1 must be given to the borrower at or before closing.

 

HVAC
Heating, Ventilation and Air Conditioning; a home's heating and cooling system