general lien
A broad-based claim against several properties owned by a defaulting party.
government loan (mortgage)
A mortgage that is insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Contrast with conventional mortage.
Government National Mortgage Association (Ginnie Mae)
Agency within the U.S. Department of Housing and Urban Development that buys mortgages from lending institutions and pools them to form securities, known as “Ginnie Maes,” which are then sold to investors.
grantee
The person to whom an interest in real property is conveyed.
grantor
The person conveying an interest in real property to another.
gross area
The sum total of all floor space, including areas such as stairways and closet space. Often measured based on external wall lengths.
hazard insurance
Insurance coverage that in the event of physical damage to a property from fire, wind, vandalism, or other hazards.
hidden amenities
Assets of a property which contribute to its value, but are not readily apparent. Examples might include upgraded or premium building materials.
highest and best use
The most profitable and likely use of a property. Selected from reasonably probable and legal alternative uses, which are found to be physically possible, appropriately supported and financially feasible to result in the highest possible land value.
Home Equity Conversion Mortgage (HECM)
Also known as a reverse annuity mortgage. Form of mortgage in which the lender makes periodic payments to the borrower using the borrower's equity in the home as Satisfaction of Mortgage: The document issued by the mortgagee when the mortgage loan is paid in full. Also called a "release of mortgage."
home equity line of credit
A mortgage loan, usually in second position, that allows the borrower to obtain cash drawn against the equity of his home, up to a predetermined amount.
home inspection
A thorough inspection by a professional that evaluates the structural and mechanical condition of a property.
homeowner's association
A nonprofit association that manages the common areas of a planned unit development or condominium project. In a condominium project, it has no ownership interest in the common elements.
homeowner's insurance
An insurance policy that combines personal liability insurance and hazard insurance coverage for a dwelling and its contents.
homeowner's warranty
Type of insurance purchased by home buyers that covers repairs or replacement of certain items, such as heating or air conditioning.
HUD-1 settlement statement
Form used by the settlement agent to itemize all charges for a real estate transaction. It gives each party a complete list of their incoming and outgoing funds.
HUD Median Income
Median family income for a particular county or metropolitan statistical area (MSA), as estimated by the Department of Housing and Urban Development (HUD).
improvements
Any item added to vacant land with the intent of increasing its value or usability.
income approach
The process of estimating the value of property by considering the present value of a stream of income generated by the property.
insurable title
The title to property which has been sufficiently reviewed by a title insurance company, such that they are willing to insure it as free and clear
interest rate
A percentage of a loan or mortgage value that is paid to the lender as compensation for loaning funds.
