| Real Estate Terminology, Wording |
Gladwin Real Estate Information
Hazard Insurance
Insurance protection for specified losses due to natural causes, such as fire, floods, earthquake, tornadoes, and other "acts
of God"
Heir
An individual who will potentially inherit an interest in land from someone who dies
Hiatus
A gap or space between two parcels of lands that is not included in the legal description of either parcel
Home Equity Conversion Mortgage (HECM)
Usually referred to as a reverse annuity mortgage, what makes this type of mortgage unique is that instead of making
payments to a lender, the lender makes payments to you. It enables older home owners to convert the equity they have in
their homes into cash, usually in the form of monthly payments. 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.
Home Equity Line of Credit, or Home Equity Loan
A mortgage loan (usually not the primary mortgage) or line of credit which gives the property owner the option to obtain cash
advances from the loan proceeds, using his or her residence as collateral, but which is not to exceed a pre-arranged amount
of the owner's total equity in the property
Homeowner's Association
A nonprofit association of individual owners of units in a multi-unit structure (either a planned unit development, or a
condominium) that manages the common areas of that structure. In a planned unit development (PUD) project, the association
holds title to the common elements, whereas in a condominium project, it holds no title to the common elements
Homeowner's Insurance
An insurance policy available to residential real estate owners that protects homeowners against financial loss from fire, theft,
public liability, and other risks
Homeowner's Warranty
A type of insurance often purchased by homebuyers that will cover repairs to certain items, such as heating or air
conditioning, should they break down within the coverage period. The buyer often requests the seller to pay for this coverage
as a condition of the sale, but either party can pay.
Homestead
Real estate that is owned and utilized as the primary family residence, protected in some states as exempt from the claims of
creditors
Homestead Deed
A document filed in the land records asserting a homestead exemption, protecting a variable amount of his assets (depending
on which state) against the claims of creditors
Housing Ratio, or Debt-to-income Ratio
The percentage that results from dividing a borrower's housing expenses by his/her gross monthly income, used by the lender
to evaluate an applicant's qualification for a loan
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
The document used in closing a real estate transaction (also known as a "closing statement" or a "settlement sheet") which
itemizes the funds that are payable at closing, including broker commissions, loan costs, and escrow amounts, and which
provides a summary of the seller's net proceeds and the buyer's net payment at closing. It is required by the US Department
of Housing and Urban Development (HUD) whenever federally-related mortgages are being made on residential properties
Insurance protection for specified losses due to natural causes, such as fire, floods, earthquake, tornadoes, and other "acts
of God"
Heir
An individual who will potentially inherit an interest in land from someone who dies
Hiatus
A gap or space between two parcels of lands that is not included in the legal description of either parcel
Home Equity Conversion Mortgage (HECM)
Usually referred to as a reverse annuity mortgage, what makes this type of mortgage unique is that instead of making
payments to a lender, the lender makes payments to you. It enables older home owners to convert the equity they have in
their homes into cash, usually in the form of monthly payments. 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.
Home Equity Line of Credit, or Home Equity Loan
A mortgage loan (usually not the primary mortgage) or line of credit which gives the property owner the option to obtain cash
advances from the loan proceeds, using his or her residence as collateral, but which is not to exceed a pre-arranged amount
of the owner's total equity in the property
Homeowner's Association
A nonprofit association of individual owners of units in a multi-unit structure (either a planned unit development, or a
condominium) that manages the common areas of that structure. In a planned unit development (PUD) project, the association
holds title to the common elements, whereas in a condominium project, it holds no title to the common elements
Homeowner's Insurance
An insurance policy available to residential real estate owners that protects homeowners against financial loss from fire, theft,
public liability, and other risks
Homeowner's Warranty
A type of insurance often purchased by homebuyers that will cover repairs to certain items, such as heating or air
conditioning, should they break down within the coverage period. The buyer often requests the seller to pay for this coverage
as a condition of the sale, but either party can pay.
Homestead
Real estate that is owned and utilized as the primary family residence, protected in some states as exempt from the claims of
creditors
Homestead Deed
A document filed in the land records asserting a homestead exemption, protecting a variable amount of his assets (depending
on which state) against the claims of creditors
Housing Ratio, or Debt-to-income Ratio
The percentage that results from dividing a borrower's housing expenses by his/her gross monthly income, used by the lender
to evaluate an applicant's qualification for a loan
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
The document used in closing a real estate transaction (also known as a "closing statement" or a "settlement sheet") which
itemizes the funds that are payable at closing, including broker commissions, loan costs, and escrow amounts, and which
provides a summary of the seller's net proceeds and the buyer's net payment at closing. It is required by the US Department
of Housing and Urban Development (HUD) whenever federally-related mortgages are being made on residential properties