H

Hard Money Loans
Mortgage loans that are made to borrowers who have significantly adverse credit. These loans are usually made by private investors or funding companies.

Hazard Insurance
A type of insurance that protects the policyholder against property damages caused by fire or a severe storm.

Heir
A beneficiary in a will.

Home Equity Line of Credit
A form of open-ended credit in which the home serves as collateral.

Home Equity Loan
A fully funded loan, obtained for a variety of purposes, secured by a second mortgage and based on the equity in your home. Interest paid is usually tax deductible.

Home Inspection
An inspection by a professional of the condition of the structure, electrical and plumbing systems, and other mechanical systems of a home being purchased.

Homeowner's Insurance
An insurance policy that covers a homeowner against damages to property. It also includes liability protection for lawsuits from people injured while on the premises.

Homeowner's Warranty (HOW)
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 but homeowners can also purchase it.

Household Income
The total income of all members of a household. An important measure used by creditors evaluating applications for joint credit.

Housing Expense Ratio
The percentage of gross monthly income that goes toward paying housing expenses.

Housing Ratio
The ratio of the monthly housing payment to total gross monthly income. Also called Payment-to-Income Ratio or Front-End Ratio.

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 An itemized listing of the costs associated with a real estate transaction, including commissions, loan fees, points, and escrow amounts. The amount of costs paid by the buyer and the seller are listed, and the seller’s net proceeds are disclosed. Also called settlement sheet.

HUD-1 Settlement 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).