| Hard Cost |
Land acquisition and construction costs.
|
| Hazard Insurance |
Insurance coverage that compensates for physical
damage to the property by fire, wind, or other natural disasters.
|
| Highest and Best Use |
Available present use or series of future uses
that will produce the highest present property value and develop a site
to its full economic potential.
|
| Holdback |
(1) Portion of a loan commitment not funded until some
additional requirement such as rental or completion is attained.
(2) In
construction or interim lending, a percentage of the contractor's draw
is held back to provide additional protection for the interim lender,
often an amount equal to the contractor's profit, which is given over
when the interim loan is closed.
|
| HOME MORTGAGE DISCLOSURE ACT (HMDA)
|
This act requires our mortgage company to report selected information to
the Federal government about each application received . HUD (U.S.
Department of Housing and Urban Development) uses HMDA to detect
discrimination and identify trends in lending patterns.
|
| Homeowners Warranty (HOW) Program
|
Program operated by a wholly-owned
subsidiary of the National Association of Home Builders through which
participating builders provide home buyers with a warranty on the
workmanship and materials of a home, and also warrant against major
structural defects.
|
| HOMEOWNERS’ ASSOCIATION (HOA) |
An association of people who own homes in a given area, formed for the
purpose of improving or maintaining the quality of the area. Unpaid HOA
dues can become a lien against a property.
|
| HOMEOWNERS’ ASSOCIATION DUES |
A monthly payment paid to the association for the maintenance and care
of the common areas.
|
| Homestead Estate |
In some states, the home and property occupied by an
owner are protected by law (up to a certain amount) from attachment and
sale for the claims of creditors.
|
| Housing Expense
|
Principal, interest, real estate taxes and hazard
insurance (PITI) and annual or monthly MIP and/or homeowners
association/condo fee, when applicable.
|
| Housing Ratio |
Housing expense/effective gross income.
|
| HUD |
U. S. Department of Housing and Urban Development, established by
the Housing and Urban Development Act of 1965 to supersede the Housing
and Home Finance Agency. It is responsible for the implementation and
administration of government housing and urban development programs.
|
| HUD-1 (or HUD-1a)
|
| Final statement of the actual settlement costs of the loan and all other
disbursements of a loan’s proceeds. A Federal requirement under RESPA.
Same as SETTLEMENT STATEMENT. |
