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Glossary H
Hazard Insurance
Insurance policy that provides compensation for damage or loss of the home. Required by lenders to protect their interest in the property.
Home Equity Line of Credit (HELOC)
A revolving line of credit, much like a credit card, secured by the equity in a home. This type of loan allows the flexibility of using only the amount of money needed at any particular time, with a corresponding monthly payment. Good for home improvement projects. The balance may be paid down and then money re-borrowed at a later date.
Home Equity Loan
An additional loan on a property, secured by the equity. Unlike a HELOC, at close of escrow all the funds are distributed to the borrower.
Homeowners Insurance
An insurance policy that includes not only the hazard insurance, but personal liability.
Housing and Urban Development (HUD
The government agency which oversees the Federal Housing Administration.
HUD-1
Settlement statement prepared by the closing agent that itemizes the costs incurred during the loan process. Also called a HUD-1 Settlement Statement.
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Letter A