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H - Glossary - Don Wixom, Nampa, Caldwell, Boise, Eagle, Meridian

Real Estate Terms

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HThere are 20 entries in the glossary.Pages: 1 Hazard InsuranceInsurance coverage that compensates for physical damage to a property from fire, wind, vandalism, or other hazards. Highest and best useThe use of a property that will yield the greatest return on the property. Home Equity Conversion MortgageA 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. A Home Equity Conversion Mortgage (HECM) is a type of home loan that lets homeowners aged 62 or over with little or no remaining balance on their mortgage convert their equity into cash. The equity can be paid to the homeowner in a lump sum, in a stream of payments, draws from a line of credit, or a combination of monthly payments and line of credit. Whatever payment plan you select, you do not have to repay any part of this reverse mortgage until you sell the home or vacate it for another reason. At that time, you pay the loan balance, plus any accrued interest. Any proceeds above that amount go to you or to your estate. Developed by the Federal Housing Administration (FHA), the HECM mortgage provides a cash growth feature not found with some other reverse mortgages. Home Equity Line of CreditA 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 Equity Loan Home InspectionA 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. The home inspection reviews the structural and mechanical condition of the property. This is not an evaluation of the market value of the home or a determination of whether the home complies with applicable building and safety codes. The inspection does not include a recommendation on whether you should or should not buy the house.The inspector bases the findings on observable structural elements of the home. Potential home buyers are urged to be present during the inspection. This will allow you to ask questions and be in a better position to learn more about any problems that arise. Home inspectorA licensed professional who looks at all parts of a house and evaluates its condition. Home Mortgage Disclosure Act (HMDA)The Home Mortgage Disclosure Act of 1975, as amended in 1989, requires most financial institutions and mortgage lenders that make mortgage loans, home improvement loans, or home refinance loans to collect and disclose information about their lending practices. Office Of The Assistant Secretary For Housing-Federal Housing Commissioner Mortgagee Letter 94-22, May 4, 1994 Homebuyer Protection PlanA HUD package of home appraisal reforms that will increase the level of consumer confidence in the homebuying process and benefit 800,000 families who get Federal Housing Administration mortgages each year. HUD web site at www.hud.gov/pressrel/pr98-206.html Homeowner's InsuranceHomeowners insurance (also called "hazard insurance") should be equal to at least the replacement cost of the property you want to purchase. Replacement cost coverage ensures that your home will be fully rebuilt in case of a total loss. Most home buyers purchase a homeowner's insurance policy that includes personal liability insurance in case someone is injured on their property; personal property coverage for loss and damage to personal property due to theft or other events; and dwelling coverage to protect the house against fire, theft, weather damage, and other hazards. If the home you want to buy is located near water, you may be able to get flood insurance as part of your homeowner's protection. In fact, it may be required in some areas, so check with your real estate professional or an approved lender for further information.Seek out and compare rates from several insurance companies before making your final decision.Lenders often want the first year's premium to be paid at or before closing. Your lender may add the insurance cost to your monthly mortgage payments and keep this portion of your payments in an escrow account. The lender then pays your insurance bill out of escrow when it receives premium notices from your insurance company. Homeowner's Insurance for Reverse MortgaHomeowner's insurance (also called hazard insurance) is required and should be equal to at least the replacement cost of the home you want to purchase. Replacement cost coverage ensures that your home will be fully rebuilt in case of a total loss.Most home buyers purchase a homeowner's insurance policy that includes personal liability insurance (though this personal liability insurance is not required) in case someone is injured on their property; personal property coverage for loss and damage to property due to theft or other events; and dwelling coverage to protect the house against fire, theft, weather damage, and other hazards.If the home is near water, you may be able to get flood insurance as part of your homeowner's protection. In fact, it may be required in some areas, so check with your real estate professional or an approved lender for further information.Seek out and compare rates from several insurance companies before making your final decision. Homeowner's warrantyA 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. Homeowners AssociationA 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. HomesteadPrimary residence as declared by the head of a household and filed with the county clerk in order to exempt the homestead from claims of creditors. Housing Expense RatioThe percentage of gross monthly income that goes toward paying housing expenses. Housing for the Elderly and HandicappedProgram authorized by Section 202 of the National Housing Act. This program provides direct Federal loans to nonprofit sponsors for construction and mortgage financing of housing for elderly and handicapped. HUDU.S. Department of Housing and Urban Development. Office of Housing/Federal Housing Administration within insures home mortgage loans made by lenders and sets minimum standards for such homes. HUD median incomeMedian family income for a particular county or metropolitan statistical area (MSA), as estimated by the Department of Housing and Urban Development (HUD). HUD-1 statementA 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." The HUD-1 Settlement Statement itemizes the amounts to be paid by the buyer and the seller at closing. The (blank) form is published by the U.S. Department of Housing and Urban Development (HUD). HVACHeating, Ventilation, and Air Conditioning. 

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