Insurance protecting against loss to real estate caused by fire, some natural causes, vandalism, etc., depending upon the terms of the policy.
HECM (Reverse Mortgage)
Used by homeowners age 62 and older to convert the equity in their home into monthly income.
Homebuyer Education Learning Program; the FHA provides this educational program in order to teach new homebuyers about the home buying process. Completing this program may entitle the buyer to a reduced premium.
Home equity line of credit
A credit line that is secured by a second deed of trust on a house. Equity lines of credit are revolving accounts that work like a credit card, which can be paid down or charged up for the term of the loan. The minimum payment due each month is interest only.
Home equity loan
A loan secured by a second deed of trust on a house, typically used as a home improvement loan.
Also called hazard insurance; an insurance policy that protects against damage to a dwelling and its contents. Most lenders require the borrower to purchase one of these policies. Flood insurance is generally not included.
Some states give the opportunity to receive property tax credit reductions to eligible households.
The ratio of the monthly housing payment in total (PITI - Principal, Interest, Taxes, and Insurance) divided by the gross monthly income. This ratio is sometimes referred to as the top ratio or front end ratio.
The U.S. Department of Housing and Urban Development.
Itemizes all closing costs and must be given to the borrower at or before closing.