Glossary

HAZARD INSURANCE: This is an Insurance Policy covering any damage to a property caused by hazards such as fire, wind and accident.

HEADER: The framing elements of a building above an opening such as a window or door.

HEARTH: This is the floor of a fireplace or the area immediately in front of it.

HEIGHT ZONING: This is a municipal restriction on the maximum height of any building or other structure.

HIDDEN AMENITIES: These are assets of a property which contribute to its value, but are not readily apparent. Examples might include upgraded or premium building materials, such as windows.

HIGHEST AND BEST USE: This is the most profitable and likely use of a property.

HOME EQUITY CONVERSION MORTGAGE (HECM): Also known as a reverse annuity mortgage, which allows home owners (usually older) to convert equity in the home into cash. This is normally paid by the lender in monthly payments. HECM's typically don't have to be repaid until the borrower is no longer occupying the home or.

HOME EQUITY LINE OF CREDIT: This is a type of mortgage loan that allows the borrower to draw cash against the equity in his home.

HOME INSPECTION: This is a complete examination of a building to determine its structural integrity and uncover any defects in materials or workmanship which may adversely affect the property or decrease its value.

HOME INSPECTOR: A person who performs professional home inspections. Usually, they have an extensive knowledge of house construction methods, common house problems, how to identify those problems and how to correct them.

HOMEOWNER'S ASSOCIATION: This is an organization of home owners in a particular neighborhood or development formed to facilitate the maintenance of common areas and to enforce any building restrictions or covenants.

HOMEOWNER'S INSURANCE: This is a policy which covers a home owner for any loss of property due to accident, intrusion or hazard. All lenders require this before funding for a loan on a property.

HOMEOWNER'S WARRANTY: This is an insurance policy offered for covering the repair of systems and appliances within the home for the coverage period.

HUD MEDIAN INCOME: Estimated by the Department of Housing and Urban Development (HUD), is the Median family income for a particular county or metropolitan statistical area (MSA).

HUD-1 STATEMENT: This is a standardized, itemized list, published by the U.S. Department of Housing and Urban Development (HUD), of all anticipated CLOSING COSTS connected with a particular property purchase. This is required by law to give to the buyer by the lender within a specific amount of time.