Mortgage Glossary

HELP (Homebuyer Education Learning Program):

An educational program from the FHA that counsels people about the home buying process.  HELP covers topics like budgeting, finding a home, getting a loan, and home maintenance.  In most cases, completion of the program may entitle the homebuyer to a reduced initial FHA mortgage insurance premium-from 2.25% to 1.75% of the home purchase price.

Home Inspection:

An examination of the structure and mechanical systems to determine a home’s safety.  This makes the potential homebuyer aware of any repairs that may be needed.

Home Warranty:

Offers protection for mechanical systems and attached appliances against unexpected repairs not covered by homeowner’s insurance.  Coverage extends over a specific time period and does not cover the home’s structure.

Homeowner’s Insurance:

An insurance policy that combines protection against damage to a dwelling and its contents with protection against claims of negligence.

Housing Counseling Agency:

Provides counseling and assistance to individuals on a variety of issues, including loan default, fair housing, and home buying.

HUD (The U.S.  Department of Housing and Urban Development):

Established in 1965, HUD works to create a decent home and suitable living environment for all Americans.  It does this by addressing housing needs, improving and developing American communities, and enforcing fair housing laws.

HUD1 Statement:

Also known as the “settlement statement,” it itemizes all closing costs.  The statement must be given to the borrower at or before closing.

HVAC:

Heating, Ventilation and Air Conditioning, a home’s heating and cooling system.