Real Estate Glossary H

H

Homeowner's insurance (hazard insurance)

Insurance coverage that compensates for physical damage to a property from fire, wind, vandalism, or other hazards. The policy typically combines personal liability insurance and property hazard insurance coverage for a dwelling and its contents. See also homeowner's insurance.

home equity line of credit (HELOC)

A HELOC is a mortgage loan, which is usually in a subordinate position, that allows the borrower to obtain multiple advances of the loan proceeds at his or her own discretion, up to an amount that represents a specified percentage of the borrower's equity in a property.

home inspection

A thorough inspection that evaluates the structural and mechanical condition of a property. A satisfactory home inspection is often included as a contingency by the purchaser. Contrast with appraisal.

Home Staging

Home staging is the act of preparing a private residence prior to going up for sale in the real estate marketplace. The goal of staging is to sell a home quickly, and for the most money possible by making a home appealing to the highest number of potential buyers. Staging focuses on improving a property to make it appeal to the largest number of buyers by transforming it into a welcoming, appealing, and attractive product for sale. Many people believe that staging raises the value of a property by way of reducing the home's flaws, depersonalizing, de-cluttering, cleaning, improving condition items, and landscaping.

homeowners' association

A homeowner's association is nonprofit association that manages the common areas of a planned unit development (PUD) or condominium project. In a condominium project, it has no ownership interest in the common elements. In a PUD project, it holds title to the common elements. See also master association.

homeowner's insurance

Homeowner's Insurance is Insurance coverage that compensates for physical damage to a property from fire, wind, vandalism, or other hazards. The policy typically combines personal liability insurance and property hazard insurance coverage for a dwelling and its contents.

homeowner's warranty (HOW)

A Home Warranty is 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.

housing expense ratio

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

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 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). The HUD-1 statement is also known as the "closing statement" or "settlement sheet."