A complete historical summary of all recorded documents affecting the title of a designated parcel of real estate.

A provision in a mortgage or note providing that the entire principal balance shall become immediately due and payable in the event of default or other predetermined event.

The use of a building, structure, or land that is subordinate to, customarily incidental to, and ordinarily found in association with, the principal use it serves. ?

A formal declaration by a person (notary) that a party did, in fact, sign a document voluntarily.

43,560 square feet (about the size of a football field).

Software program that allows HUD’s business partners to submit their Previous Participation Certification (form 2530) request to HUD for processing via the Internet.

Latin for “According to value.” Real Estate taxes are known as Ad Valorem taxes.

A mortgage instrument in which the interest rate adjusts periodically according to a predetermined index and margin.

Under the Equal Credit Opportunity Act, adverse action occurs when a completed application is submitted to a lender and the credit request id denied or not approved for the amount or term requested by the applicant.

In general, housing for which the occupant(s) is/are paying no more than 30 percent of his or her income for gross housing costs, including utilities. Please note that some jurisdictions may define affordable housing based on other, locally determined criteria, and that this definition is intended solely as an approximate guideline or general rule of thumb.

A competitive program of the Federal Home Loan Bank (FHLBanks) system that provides grants twice a year through financial institutions for investment in low- or moderate-income housing initiatives. The program is flexible, so that AHP funds can be used in combination with other programs and funding sources, thus promoting a project’s feasibility.

A nationwide survey designed to provide communities with a fresh look at how they are changing. It is a critical element in the Census Bureau’s reengineered 2010 census plan. The ACS collects information such as age, race, income, commute time to work, home value, veteran status, and other important data from U.S. households.

Contains data on apartments, single-family homes, mobile homes, vacant homes, family composition, income, housing and neighborhood quality, housing costs, equipment, fuels, size of housing units, and recent movers. National data are collected every other year, from a fixed sample of about 50,000 homes, plus new construction each year. The survey started in 1973 and has relied on the same sample since 1985, allowing users to view statistical changes in homes and households over the years. In some metropolitan areas, additional samples (every four to six years) measure local conditions.

Repayment of a debt in periodic installments of principal and interest resulting in payment in full at the end of the loan term.

A review of impediments or barriers that affect the rights of fair housing choice. It covers public and private policies, practices, and procedures affecting housing choice. The AI serves as the basis for fair housing planning, provides essential information to policymakers, administrative staff, housing providers, lenders, and fair housing advocates, and assists in building public support for fair housing efforts.

Section 8 of the U.S. Housing Act of 1937 provides for annual rent adjustments for housing units assisted under this section. HUD develops the rent adjustment factors, called AAFs, on the basis of Consumer Price Index (CPI) data on changes in residential rent and utility costs. HUD publishes the AAFs annually in the Federal Register.

Annual contracts with Public Housing Authorities for payments toward rent, financing debt service, and financing for modernization.

The HOME Program allows the use of three income definitions for the purpose of determining applicant eligibility:
    -  Annual income as defined in the Code of Federal Regulations (24 CFR 5.609);
    -  Annual income as reported under the Census Long Form for the most recent decennial census; or
    -  Adjusted gross income as defined for purposes of reporting under Internal Revenue Service (IRS) Form 1040 series for individual federal annual income tax purposes.
The definitions are collectively referred to as “annual income” and are also used in the Community Development Block Grant (CDBG) Program.

Total finance charges - including interest, loan fees, points and other charges - expressed as a percentage of the total amount of the loan. Under the Federal Truth-In-Lending Act (Regulation “Z”), the APR must be disclosed to the borrower within 3 business days of receipt of a loan application.

A state provision that prohibits a lender from requiring an applicant to obtain hazard insurance through a particular company.

Payment of an obligation at the end of the period for which it is due or levied; the opposite of payable in advance. Mortgage interest and real estate taxes are generally paid in arrears.

The act of preparing a report by a qualified appraiser setting forth an opinion or estimate of value. The most common type of appraisal for residential properties is the Comparable Sales Approach. Two other appraisal techniques are the Cost Approach and the Income Approach. An appraisal is usually ordered by the lender or the Mortgage Broker.

An increase in property value caused by economic factors; the opposite of depreciation.

The value placed on property for the purpose of taxation.

A levy placed against property for a special purpose.

The party who receives an ownership interest in a mortgage.

A document that evidences a transfer of ownership of a mortgage from one investor to another.

The party who transfers an ownership interest in a mortgage.

An agreement by a buyer to assume liability on an existing debt secured by a mortgage with its original terms left intact. An assumption of mortgage by a buyer does not automatically release the seller from liability on the accompanying note.

A financial statement showing assets, liabilities, and the net worth as of a specific date.

A mortgage with periodic installments of principal and interest that do not fully amortize the loan. The balance of the mortgage is due in a lump sum at the end of the term.

A condition of financial insolvency in which a person’s liabilities exceed assets and the person is unable to pay current debts. Generally, a person must wait two years following the discharge of the bankruptcy to be eligible for a conventional or government backed mortgage loan. Bankruptcy is reported by most credit agencies for a period of ten years.

A unit of measurement used to describe yield. A basis point is 1/100 of 1%. Example: 100 basis points = 1%; 75 basis points = 3/4 %; 50 basis points = ½%.

A mortgage with payments due every two weeks totaling 26 payments a year thus reducing the cost of a 30-year mortgage to that of a 23-year mortgage.

A commitment to insure; a temporary report effective for a limited time until a permanent policy is issued. A binder lists all the known liens and defects affecting the title.

A mortgage lien securing several parcels of property, frequently used by developers who have purchased a single tract of land intending to subdivide into individual parcels. The developer normally requires a “partial release” clause so that individual parcels can be released from the blanker mortgage as they are sold.

A structure is blighted when it exhibits objectively determinable signs of deterioration sufficient to constitute a threat to human health, safety, and public welfare.

Borrowing against the equity of one’s present home to enable the purchase of another home before the existing one sells.

Abandoned, idled, and underused industrial and commercial facilities where expansion and redevelopment is burdened by real or potential environmental contamination.

A set of building construction requirements developed and administered by national and local bodies to ensure that buildings meet certain minimum standards for structural integrity, safety, design, and durability. ?

A cash payment to a lender to reduce the interest rate a borrower must pay. Buy-downs are usually temporary and help the borrower qualify at a lower rate.

A small, relatively permanent statistical subdivision of a county or statistically equivalent entity, delineated for data presentation purposes by a local group of census data users or the geographic staff of a regional census center in accordance with Census Bureau guidelines.

A four-digit basic number, followed by an optional two-digit decimal suffix, used to uniquely identify a census tract within a county or statistically equivalent entity.

A document used by the Department of Veteran Affairs to certify a veteran’s eligibility for a VA loan.

A Verterans Affairs (VA) appraisal.

A mortgage on personal property.

Money paid by the borrower to affect the closing of a mortgage loan. This normally includes an origination fee, title insurance, survey, attorney’s fees, and prepaid items such as taxes and insurance escrow payments.

A financial disclosure accounting for all funds received and expected at settlement. The HUD-1 settlement statement shows how costs are allocated between the buyer and the seller. The HUD-1 is not required if the buyer has no closing costs.

Any condition that adversely affects the title of real estate or curtails an owner’s rights.

May comprise two or more metropolitan statistical areas, a metropolitan statistical area and a micropolitan statistical area, two or more micropolitan statistical areas, or multiple metropolitan and micropolitan statistical areas that have social and economic ties as measured by commuting, but at lower levels than are found among counties within metropolitan and micropolitan statistical areas.

Any building other than a residential or government building, including any building constructed for industrial, retail, business, or public purposes.

As used in the HOME program, commitment means one of three things. The Participating Jurisdiction (PJ) has:
    1.  Executed a legally binding agreement with a state recipient, subrecipient, or contractor to use a specific amount of HOME funds to produce affordable housing or provide tenant-based rental assistance;
    2.  Executed a written agreement reserving a specific amount of funds for a Community Housing Development Organization; or
    3.  Met requirements to commit to a specific local project as defined below.

For tenant-based rental assistance, commitment means that a rental assistance contract between the PJ (or other entity) and the tenant or owner has been executed. HUD recognizes a commitment when the project is set up in the Integrated Disbursement and Information System.

Created under the Housing and Community Development Act of 1974, this program provides grant funds to local and state governments to develop viable urban communities by providing decent housing with a suitable living environment and expanding economic opportunities to assist low- and moderate-income residents. CDBG replaced several categorical grant programs, such as the Model Cities program, the Urban Renewal program, and the Housing Rehabilitation Loan and Grant program.

HUD’s Office of Community Planning and Development seeks to develop viable communities by promoting integrated approaches that provide decent housing, a suitable living environment, and expand economic opportunities for low- and moderate-income persons. The primary means toward this end is the development of partnerships among all levels of government and the private sector, including for-profit and nonprofit organizations.

A form of ownership in which the separate owners of the individual units jointly own the development’s common areas and facilities.

A mortgage loan in compliance with the underwriting criteria of “Fannie Mae” and “Freddie Mac”.

Freddie Mac Website
Fannie Mae Website

An area that has a census population of one million or more, has component parts that qualify as primary metropolitan statistical areas (PMSAs) based on official standards, and local opinion favors the designation. CMSAs consist of whole counties except for the New England states, where they consist of county subdivisions (primarily cities and towns).

A document written by a state or local government describing the housing needs of the low- and moderate-income residents, outlining strategies to meet these needs, and listing all resources available to implement the strategies. This document is required in order to receive HUD Community Planning and Development funds.

A short-term loan where the proceeds are used to finance the actual construction of a dwelling. The loan is typically made in partial disbursements called “draws” as construction progresses.

A loan where the proceeds are used to finance the actual construction of a dwelling. The loan is typically made in partial disbursements called “draws” as construction progresses.

The recording of a document or an instrument in the public records in the county where a property is located that is designed to give adequate notice to everyone.

Something that requires completion of a certain act or the happening of a particular event. Example: financing “contingency” in a real estate contract.

A method of selling and financing property whereby the buyer obtains possession but the seller retains the legal title.

A private mortgage loan neither government insured (FHA) nor government guaranteed (VA).

Veterans Affair Home Loan Website
Federal Housing Athority Website

The transfer of the title to land from one person or class of persons to anther.

Housing in which each member shares in the ownership of the whole project with the exclusive right to occupy a specific unit and to participate in project operations through the purchase of stock.

Refers collectively to metropolitan and micropolitan statistical areas.

A legally enforceable promise or restriction in a mortgage or deed.

A report of an individual’s credit history prepared by a credit bureau and used by the lender in determining a loan applicant’s credit worthiness.

A numerical measurement that reflects the ability of a borrower to manage credit.

HUD USER provides researchers with access to original electronic data sets generated by PD&R-sponsored data collection efforts, including the American Housing Survey, HUD median family income limits, as well as microdata from research initiatives on topics such as housing discrimination, the HUD-insured multifamily housing stock, and the public housing population.

The periodic payment of principal and interest as specified in a promissory note.

The Decennial Census, undertaken by the U.S. Census Bureau, occurs every 10 years, in years ending in zero, to count the population and housing units for the entire United States. Its primary purpose is to provide the population counts that determine how seats in the U.S. House of Representatives are apportioned.

A written document that transfers an ownership interest in real property from a seller (grantor) to a buyer (grantee).

An instrument used in some states in place of a mortgage. The borrower conveys legal title to a trustee who holds the title as collateral for the benefit of a lender and subsequently re-conveys the title to the borrower upon payment of the debt.

A limitation placed in a deed limiting or restricting the use of real property.

To avoid foreclosure (“in-lieu” of foreclosure), a deed is given to the lender to fulfill the obligation to repay the debt. This process does not allow the borrower to remain in the house, but helps avoid the time, effort, and costs associated with foreclosure.

A deed given by a mortgagor to a mortgagee to satisfy a debt and avoid foreclosure.

Breach or non-performance of a clause in a note or mortgage which, if not cured, could lead to foreclosure.

Upon payment in full to the lender, this clause in a mortgage requires the lender to “give back” his security interest in the property and issue to the borrower a recordable Satisfaction of Mortgage. This clause also prohibits the lender from foreclosing as long as the borrower complies with all the terms and conditions of the mortgage.

A personal judgment levied against the borrower for the balance of the mortgage debt when a foreclosure sale fails to generate funds sufficient to satisfy the debt.

The average number of dwelling units or persons per gross acre of land, usually expressed in units per acre, excluding any area of a street bordering the outside perimeter of a development site.

A loss of value in real estate brought about by age, physical deterioration, functional or economic obsolescence. Broadly, a loss in value from any cause; the opposite of appreciation.

Fannie Mae’s automated underwriting system designed to enable mortgage lenders to process loan applications efficiently and objectively.

Any area designated by the HUD Secretary as an area that has high construction, land, and utility costs relative to the area median gross income.

Authorization provided to an approved lender to originate and underwrite FHA insured loans without obtaining approval from the FHA FHA prior to funding the loan.

The sale of a note for less than its face value. The purpose of a discount is to adjust the annual yield on the note.

One percentage of the face amount of the loan. Discount points are a one-time charge assessed at closing by the lender to increase the yield to a competitive level.

The flow of funds out of savings institutions into short-term investments in which interest rates may be higher. This shift normally results in a new decrease in the amount of funds available for long-term real estate financing.

A tax by the Florida Department of Revenue on deeds of conveyance and mortgage notes.

Provides complete documentation of the development of the income limits and median family incomes (since 2007), as well as fair market rents (since 2005), for any area of the country.

A form of acceleration clause that gives a lender the option to call a mortgage loan due upon the sale or transfer of the property. A mortgage with a Due-On-Sale clause is not assumable.

A right or interest in the land of another entitling the easement holder to a specific limited use, such as installing power and telephone lines, or crossing over the property. Ingress is the right to enter upon another’s land, whereas egress is the ability to move about and exit unchallenged from that land. While size and location are important aspects of an easement, the age is immaterial.

Electronic mailing list (eList) available from HUD USER to assist in disseminating research information, and to encourage subscribers to share information and exchange ideas with one another.

A federal CPD program grant designed to help improve the quality of existing emergency shelters for the homeless, to make additional shelters available, to meet the costs of operating shelters, to provide essential social services to homeless individuals, and to help prevent homelessness. ESG also provides short-term homeless prevention assistance to persons at imminent risk of losing their own housing due to eviction, foreclosure, or utility shutoffs.

An exercise of the power of government or quasi-government agencies (such as airport authorities, highway commissions, community development agencies, and utility companies) to take private property for public use.

Empowerment Zones and Enterprise Communities are part of The Empowerment Zones and Enterprise Communities (EZ/EC) program. The Empowerment Zones and Enterprise Communities (EZ/EC) program was designed by the federal government to encourage comprehensive planning and investment aimed at the economic, physical, and social development of the neediest urban and rural areas in the United States. Under the initial round of funding announced in December 1994, 71 urban sites received EZ/EC designation. The major share of the federal funding went to the six sites designated as Empowerment Zones (EZs) and the remaining funds went to Enterprise Communities (ECs). Although considerable latitude has been afforded to these sites regarding the selection of specific strategies and activities to pursue, each funded community’s efforts at zone transformation were expected to reflect four key principles: (1) economic opportunity; (2) community-based partnerships; (3) sustainable community development; and (4) a strategic vision for change.

A physical intrusion upon the property of another. It is usually revealed by a survey.

Items that affect or limit the fee simple title such as mortgages, leases, easements, and restrictions.

Any process that identifies and specifies the energy and cost savings likely to be realized through the purchase and installation of particular energy efficiency measures or renewable energy measures.