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Half-Bath
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A bathroom with no bath or shower, including only a toilet and sink. Another term for a half-bath is a “powder room”.
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Hard cost
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The cost of actually constructing property improvements.
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Hazard insurance
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Also known as “homeowner’s insurance” or “fire & flood insurance”, this type of policy provides coverage against structural damage from fire, flooding, and wind. Most mortgage lenders require coverage for at least the replacement value of the home.
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HELP
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The acronym for the Homebuyer Education Learning Program. The HELP is an educational program that counsels people about the homebuying process, including topics such as budgeting, finding a home, getting a loan, and home maintenance. Usually, completing the program entitles the buyer to a reduced FHA mortgage insurance premium.
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High Ceilings
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This term refers to ceilings with a height of nine feet or more. High ceilings are usually found in pre-war residential, and most commercial spaces. However, some of the newer high-end residential buildings may also have high ceilings.
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Highest and best use
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The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value.
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High-rise
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In central urban districts, this usually means a building above 25 stories high (from the ground level at the site of the building). In suburban districts, however, this term can refer to structures higher than 7 or 8 stories.
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Holdbacks
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A portion of a loan commitment that is not funded until an additional requirement is met, such as completion of construction. See also: Graduated Loan, Construction-To-Permanent Loan.
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Holding period
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The length of time an investor expects to own a property from purchase to sale.
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Hold-over tenant
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A tenant retaining possession of the leased premises after the expiration of a lease.
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Home equity line
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An open-ended line of credit based on a homeowner's accumulated equity. The available may increase if the value of the property increases.
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Home equity loan
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A closed-ended loan secured by the equity in a home. The loan amount is fixed, without an option to redraw in the future.
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Home inspection
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A complete examination of the home’s structural and mechanical systems, done by a licensed professional. Home inspection determines the house’s safety and makes the potential buyer aware of any repairs that may be needed.
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Home inspector
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A licensed professional who performs home inspections.
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Home price
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The price agreed upon by a buyer and seller, as opposed to the market value or appraised value. For example, a house may be appraised at $ 500,000, be offered for $550,000 (due to neighborhood attractiveness), and priced at $ 525,000 at the time of sale.
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Home warranty
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Offers insurance protection for mechanical systems and attached appliances. Does not cover the structure (which is covered by homeowner’s insurance).
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Homeowners Association (HOA)
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A private group that governs a subdivision, condominium or planned community. The HOA collects regular fees from owners, pays for common area maintenance, handles legal and safety issues, and enforces the covenants, conditions, and restrictions set by the developer.
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Homeowner's insurance
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An insurance policy that offers protection against damage to a house and its contents, as well as protection from claims of negligence or inappropriate action that results in injury or property damage.
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Homestead
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A parcel of land used by the owner as a primary residence.
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Housing counseling agency
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An organization that provides counseling and assistance to individuals on a variety of issues, including loan default, fair housing, and home buying.
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Housing expense ratio
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The percentage of gross monthly income devoted to housing costs.
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HUD
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The U.S. Department of Housing and Urban Development, whose mission is “to increase homeownership, support community development and increase access to affordable housing free from discrimination.” (Direct quote from the HUD website - www.hud.gov). The HUD works with community and faith-based organizations, provides emergency funding for troubled districts, educates low-income communities about housing and discrimination laws, enforces fair-housing laws, and more. See also: FHA (which is overseen by the HUD).
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HUD-1 Statement
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A document that itemizes all closing costs, that must be given to the borrower, at or before closing. Also known as a settlement sheet.
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HVAC
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The acronym for Heating, Ventilation and Air Conditioning; generally refers to all of the appliances involved, as a complete system (i.e. “HVAC setup”, “certified HVAC installation”, etc.). The acronym HVAC/R also includes [commercial] refrigeration systems.
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Hybrid debt
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A mortgage position with equity-like participation features in both cash flow and the appreciation of the property at the time of sale or refinance.
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