Protects the insured against loss due to fire or other natural disaster in exchange for a premium paid to the insurer.
Home equity loan
A loan secured by equity in a property. These are sought for a variety of purposes, including home improvements, major purchases or expenses and debt consolidation. Interest paid is usually tax-deductible.
A type of insurance that covers repairs to specified parts of a house for a specific period of time.
Housing and Urban Development (HUD) A U.S. government agency established to implement federal housing and community development programs; oversees the Federal Housing Administration.
Local government ordinance that sets minimum standards of safety and sanitation for existing residential buildings.
Housing expense-to-income ratio
The ratio, expressed as a percentage, that results when a borrower’s housing expenses are divided by his/her monthly income.
See Housing and Urban Development.
HUD-I settlement statement
A form that itemizes the closing costs associated with purchasing a home.