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Half Bath
A room in a residence that contains a toilet and wash basin but no bathing facilities, such as a shower or bathtub.
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.
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
A type of insurance that covers repairs to specified
parts of a house for a specific period of time.
It may be provided by the builder or property seller as a
condition of the sale.
Homestead
A home that the owner has recorded a declaration of homestead.
The home is protected against judgements
up to a specified amount.
Housing Expense Ratio
The percentage of gross monthly income that goes toward paying housing expenses.
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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