Habendum Clause
The "to have and to hold" clause that defines the amount of the estate granted in the deed.
Back to top

Half Bath
A half bathroom in a home that contains a wash sink and a toilet, but no bathtub or shower stall.
Back to top

Hangout
The principal balance of a loan remaining when the term of the loan is beyond the term of a lease.
Back to top

Hazard Insurance
Insurance that protects a homeowner against the cost of damages to property caused by fire, windstorms, and other common hazards. Also referred to as homeowner's insurance.
Back to top

Home Equity Conversion Mortgage (HECM)
Home Equity Conversion Mortgage (HECM) - Also referred to as a "reverse mortgage", a Home Equity Conversion Mortgage is a special type of home loan that allows homeowners to convert the equity in their homes into cash that is paid to them in a lump sum or in a stream of payments. With this type of mortgage repayment not required until the borrower no longer uses the home as a principal residence.
Back to top

Home Equity Line of Credit (HELOC)
A Home Equity Line of Credit (HELOC) is a loan secured by your property which is usually in second position to your first mortgage. A HELOC allows you to receive the loan proceeds in the form of multiple advances up to a limit that represents a maximum percentage of the equity in your property. A HELOC is commonly selected by homeowners who have good rates on their existing first mortgage and want to generate cash to pay off bills, remodel or fund major expenses such as college tuition.
Back to top

Home Equity Loan
A loan secured by a subordinate mortgage on one's principal residence, generally to be used for some non-housing expenditure. A traditional home equity loan provides lump-sum proceeds at the time the loan is closed.
Back to top

Home Inspection
A complete and detailed inspection that examines and evaluates the mechanical and structural condition of a property. A complete and satisfactory home inspection is often required by the homebuyer. Compare with appraisal.
Back to top

Homeowner's Insurance
Insurance that protects a homeowner against the cost of damages to property caused by fire, windstorms, and other common hazards. Also referred to as hazard insurance.
Back to top

Homeowner's Warranty
A type of insurance policy that covers repairs to certain parts of a home for an agreed upon period of time. It is typically provided by the contractor or seller as a condition of the sale
Back to top

Homeowners Association
A nonprofit association that manages the common areas of a condominium project or planned unit development (PUD). In a condominium development, the association has no ownership interest in the common elements. In a PUD, it holds title to the common elements of the project.
Back to top

Homeowners Association Dues
Payments made to an association responsible for the maintenance of the common areas in a condominium or subdivision development.
Back to top

Housing Ratio
A standard calculation performed by mortgage lenders to determine if a borrower qualifies for a specific loan type and amount. It is calculated by dividing the monthly housing expense (Principal, Interest, Taxes and Insurance) by the borrower's monthly gross income. Also referred to as a front-end ratio or a top ratio.
Back to top

Housing Starts
Economic indicator that measures the number of residential units on which construction is begun each month. Monthly percent changes reflect the rate of change of such activity. The level of housing starts is widely followed as an indicator of residential construction activity. Frequency: monthly. Source: Commerce Department.
Back to top

HUD
HUD, also known as the U.S. Department of Housing and Urban Development, insures home mortgage loans made by lenders meet minimum standards for such homes.
Back to top

HUD Median Income
Median family income for a particular county or metropolitan statistical area, as estimated by the Department of Housing and Urban Development (HUD).
Back to top

HUD-1 Statement
Also referred to as the closing statement or the settlement statement, this is the document that provides line by line detail of the financial details related to a specific real estate transaction such as the fees paid by the seller and the buyer for a purchase transaction or the fees paid by the borrower for refinances.
Back to top

Hybrid REIT
Hybrid REIT refers to a real estate investment trust that generates income from rent and also capital gains, like an equity REIT.
Back to top