HUD Glossary Flashcards
Adjustable Rate Mortgage (ARM)
Mortgage with initial interest rate that applies for a defined periods of time (1 month to 10 years), then adjust at pre-determined intervals for the life of the loan. Interest rates can increase or decrease when adjusted.
Adjusted Gross Income
Gross income minus adjustments, or reductions, that one is eligible for, such as deductions for unreimbursed business expenses, tuition and fees, and contributions to certain retirement accounts.
Affirmatively Furthering Fair Housing (AFFH)
Provision of the FHA, requiring all executive departments and agencies to administer their programs and activities relating to housing and urban development in a manner that affirmatively furthers the purposes of the FHA. Requires also the HUD Secretary to administer all HUD programs in a manner that affirmatively furthers fair housing
Affirmative Fair Housing Marketing Plan (AFHMP)
Sample fillable form to create and AHMP, for multifamily housing is available in the resources section
Area Median Income (AMI)
Midpoint in the family income range for a metropolitan statistical area or for the non-metropolitan parts of a state. AMI is determined annually by HUD, this is used as a basis to stratify income as extremely low, very low, low , moderate, and above moderate. It is used to determine income eligibility for various housing programs
Arrearages
Total amount of past due payments owed to a lender from a borrower in mortgage payments, or a landlord from a tenant in rental payments. Also called arrears.
Assistance animal
it is not considered a pet. the animal that works, assists for the benefit of a person with a disability or provides emotional support. For purposes of reasonable accommodations requests, the FHA does not require an assistance animal to be individually trained or certified.
Association dues
charged by community for homeowners associations to pay for repairs, upkeep, landscaping, improvements, and property management
Back-end ratio
Rate that calculates a borrower’s total monthly debts, including housing and other debt obligations, as a percentage of gross monthly income. Used by lenders to qualify borrowers for a mortgage. Also called the debt-to-income ratio.
Balloon payments
an oversize payment due at the end of the mortgage
blockbusting
convince or attempt to convince a person to sell or rent a dwelling because of the entry or prospective entry into a neighborhood or a person or person or a particular race, color, religion, sex, familial status, national origin, or disability
cash-for-keys
alternative to a legal eviction following foreclosure. The occupant receives cash funds from the servicer in exchange for turning in the keys and vacating the property. Conditions apply, such as returning the property in broom-clean condition with all appliances.
CFPB
The consumer Financial Protection Bureau regulates the offering and provision of consumer financial products or services under federal consumer financial laws and educates and empowers consumers to make better informed financial decisions
Chattel Loan
Loans secured by a movable piece of personal property. Manufactured homes on leased land are typically financed with chattel loans. The manufactured home continues to secure the loan even if it is moved to a new location. Interest rates of chattel loans tend to be higher than interest rates for mortgages.
Closing Cost
