HUD Housing Counselor Exam

public assistance payments, and retirement benefits. Ground Rent -ANSWER- An arrangement in which the owner of a dwelling or structure does not own the land on which the structure resides. In such cases, the borrower takes out a mortgage to purchase the dwelling, but must still pay rent for the land. HAMP -ANSWER- Home Affordable Modification Program, a component of Making Home Affordable. HARP -ANSWER- Home Affordable Refinance Program, a component of Making Home Affordable. HOA -ANSWER- Homeowners Association HOEPA -ANSWER- Home Ownership and Equity Protections Act Home Equity Line of Credit (HELOC) -ANSWER- A home equity line of credit, or HELOC, is a line of credit that you can take from at any time during the draw period, up to your credit limit. Typically, the draw period is 10 years and the repayment period lasts 15 years. HOME Investment Partnership Program (HOME Program) -ANSWER- HUD program that provides grants to states and localities for building, buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low-income people. Homeowners Insurance -ANSWER- An insurance policy that can provide coverage for damages to a dwelling and contents that belong to the homeowner. Additionally, it can offer protection to homeowners against losses resulting from liability claims from accidents occurring on the property. Homeowners insurance is mandatory for most homeowners with mortgages to obtain. HOPWA -ANSWER- Housing Opportunities for Persons with AIDS Housing Choice Voucher Program (Section 8) -ANSWER- The Housing Choice Voucher Program, commonly referred to as Section 8, is the federal government's major program fro assisting very low-income families, the elderly, and the disabled to afford decent, safe and sanitary housing in the private market. Participants are not limited to units located in subsidized housing projects and are free to choose any housing that meets program requirements. Housing choice vouchers are administered locally by public housing agencies, or PHAs, which receive federal funds from HUD for program administration. HUD Housing Counselor Exam verified answers Lien -ANSWER- A legal claim against a property that secures the property as collateral if a debtor fails to meet loan obligations. Acts as a defect on the title and must be settled before transfer or ownership. The lien holder, or creditor granting the loan, releases the lien when the loaHousing Ratio -ANSWER- A rate that calculates a borrower's housing-related obligations as a percentage of gross monthly income. Frequently used by lenders to qualify borrowers for a mortgage. Also called a front-end ratio. Imminent Default -ANSWER- When default is reasonably foreseeable. Typically applies to borrowers who are either current or less than 60 days delinquent. With FHA mortgages, borrowers facing imminent default are defined as those who are current or less than 30 days past due on the mortgage obligation and are experiencing a hardship that prevents