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E-3-08, Acronyms and Glossary of Defined Terms: H (04/05/2023)


home equity combined loan-to-value


home equity line of credit


Housing and Economic Recovery Act of 2008

higher-priced covered transaction

A mortgage loan that meets the corresponding definition under Regulation Z of the Truth in Lending Act, and applies to both principal residences and second homes.

higher-priced mortgage loan

A mortgage loan that meets the corresponding definition under Regulation Z of the Truth in Lending Act. Only principal residences are included in this category.


homeowners' association


Home Ownership and Equity Protection Act of 1994

home equity combined-loan-to-value ratio (HCLTV)

A ratio that is used when a mortgage financing package includes home equity lines that are potential liens; a ratio that is developed by dividing the sum of the original loan amount of the first mortgage, the amount of the HELOC (whether or not there have been any draws), and the unpaid principal balance of all other subordinate financing by the lower of the property’s sales price or appraised value.

home equity line of credit (HELOC)

A mortgage loan, which is usually in a subordinate position, that allows the borrower to obtain cash advances at their discretion, up to an approved amount that represents a specified percentage of the borrower’s equity in a property.

homeowners’ association (HOA)

An entity formed to manage the day-to-day operation and long term interests of residential dwelling communities, including condo, co-op, and PUD projects. The HOA is typically created and vested with specific roles, responsibilities, and rights by the project’s legal documents in compliance with applicable laws. For Fannie Mae’s purposes, the term “HOA” includes a homeowners’ association, a common interest community association, a cooperative corporation, and other similar entities.

homeowner’s insurance

See property insurance.

HomePath property

A HomePath property is a property that was owned and sold by Fannie Mae through a transaction resulting in the disposition of its real estate owned.


Fannie Mae’s flexible, affordable lending product designed to meet the needs of low- to moderate-income homebuyers and homeowners. HomeReady is a standard product with underwriting recommendations available through DU and manual underwriting.

HomeStyle Renovation mortgage

A mortgage that enables eligible borrowers to obtain financing to renovate, remodel, repair, or upgrade their existing home or a home that they are purchasing.

housing expense ratio

A ratio derived by dividing the borrower’s monthly housing expense by their stable monthly income.


Department of Housing and Urban Development


HUD-1 Settlement Statement. See “settlement statement.”

HUD-guaranteed mortgage

A mortgage guaranteed under Section 184 of the Housing and Community Development Act of 1992, which created the Native American Housing Loan Guarantee Fund.

hybrid appraisal

Property data collected by a trained and vetted third party (real estate agent, insurance inspector, appraiser, etc.) is passed to an appraiser to perform an enhanced version of a desktop appraisal.