Hazard Insurance
A form of insurance that protects the insured
property against physical damage such as fires,
tornadoes, earthquakes, etc. Mortgage lenders
often require a borrower to maintain an amount of
hazard insurance on the property that is equal to
the amount of the mortgage loan.
Home Equity Line of Credit (HELOC)
A real estate loan, usually in a subordinate
position, that allows a borrower to borrow against
equity in real estate owned with specific
limitations. This is an open end loan that permits
the borrower to repay and re-borrow the funds
available.
Home Equity Loan
A mortgage on the borrower's principal residence,
usually for the purpose of making home
improvements or debt consolidation. This is a
closed-end loan repayable in accordance with a
fixed schedule.
Home Owners Association (HOA)
A nonprofit association, whose directors and
officers are elected by the unit owners of a
condominium or PUD project; primary
responsibilities are to manage the common areas,
expenses and services of the project.
Homeowners Insurance
A form of insurance that protects the insured
property against loss from theft, liability and
most common disasters. Also referred to as hazard
insurance.
Housing
and Urban Development (HUD)
The U.S. government agency that administers FHA,
GNMA and other housing programs.
Housing Debt-to-Income Ratio
The sum of all monthly housing mortgage expenses
such as principal, interest, taxes and insurance
(PITI), Homeowners dues, private mortgage
insurance and any special assessments as a
percentage of gross qualifying income.
