Hazard Insurance
Insurance coverage that provides compensation to insured in case of property damage or loss (e.g., renters, homeowners, fire, earthquake, flood, etc. insurance).
Home Affordable Modification Program (HAMP)
The Home Affordable Modification Program is part of the government’s Making Home Affordable Program, and provides homeowners an opportunity to modify their loan to more affordable monthly payments. For more information about this program, please visit MakingHomeAffordable.gov or contact your mortgage company directly.
Home Affordable Refinance Program (HARP)
The Home Affordable Refinance Program is part of the government’s Making Home Affordable Program, and provides homeowners an opportunity to refinance their loan to more affordable monthly payments – even if they have limited or no equity in their home. For more information about this program, please visit MakingHomeAffordable.gov or contact your mortgage company directly.
Home Equity Conversion Mortgage (HECM)
A home equity conversion mortgage (HECM) is a reverse mortgage insured by the Federal Housing Administration. Also see: “Reverse Mortgage.”
Home Equity Line of Credit
A way of borrowing money against the equity or assets that the homeowner has in the home to pay for things such as home repairs, college education, or other personal uses.
Home Equity Loan
A loan backed by the value of a home (real estate). If the borrower defaults or does not pay the loan, the lender has some rights to the property. The borrower can usually claim a home equity loan as a tax deduction.
Home Inspection
An examination of the structure and mechanical systems to determine a home’s quality, soundness and safety; makes the potential homebuyer aware of any repairs that may be needed. The homebuyer generally pays inspection fees.
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, also called hazard insurance, that combines protection against damage to a dwelling and its contents including fire, storms or other damages with protection against claims of negligence or inappropriate action that result in someone’s injury or property damage. Most lenders require homeowners insurance and may escrow the cost. Flood insurance is generally not included in standard policies and must be purchased separately.
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.
HUD1 Statement
Also known as the “settlement sheet or “closing statement” it itemizes all closing costs; must be given to the borrower at or before closing. Items that appear on the statement include real estate commissions, loan fees, points, and escrow amounts.
