HUD: Housing & Urban Development, a branch of the Federal Government established in 1965, concerned with making as many citizens of the USA home owners. It regulates, insures, and makes possible all manner of protections to consumers including Fair Housing Laws, financing regulations, and insurances to lenders. It also establishes standards of housing for all residential properties, rented or owned.

HUD 1 Statement: The closing statement required to be issued by the settlement agency or escrow after the closing of a real estate transaction. It lists the price of the property and the costs to purchase and to sell. An Estimated HUD is usually provided and signed by the buyer prior to closing. It is a common condition required by the lender on a home loan.

Hazard Insurance: An insurance policy paid for by a homeowner that protects them for loss due to fire, theft, and other hazards. All lenders require this in order to fund a real estate loan. It is also called homeowner’s insurance.

High Balance: Incredit report terms, this is the highest balance ever charged on a revolving account.

Home equity: The difference between the value of the property minus any amount owed on the property is the equity in the property. This equity is NOT shared with the lender on the property unless a separate contract specifically states differently. The equity share belongs to the home owner alone. A tremendous amount of wealth can be generated by owning real estate.

Home equity loan: (HELOC) A line of credit secured against the value of a person’s owned home. Typically the interest is adjustable and the borrower pays on only the balance that is currently owed. The balance can be paid down and then re-borrowed on over the years of holding the loan.

Homeowner’s Insurance: See hazard insurance.

Home Warranty: In real estate, this is a separate policy of insurance usually issued at closing to protect a new home owner from substantial repair bills during the first year of home ownership. A deductible is paid for each required visit, but the insurance will typically cover such items as heat and air conditioning units, plumbing problems, or electrical problems. Read the informational brochure prior to purchase to be sure you understand the provisions of the policy.