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Real Estate - A comparison or ratio of gross income to housing and non-housing expenses; With the FHA, the-monthly mortgage payment should be no more than 29% of monthly gross income (before taxes) and the mortgage payment combined with non-housing debts should not exceed 41% of income.
US Department of Housing and Urban Development - Cite This Source - This Definition - The ratio between a borrower's monthly payment obligations divided by his or her net effective income (FHA or VA loans) or gross monthly income (conventional loans).
Ginnie Mae - Cite This Source - This Definition - The percentage of gross monthly income that goes toward paying for your monthly housing expense, alimony, child support, car payments and other installment debts, and payments on revolving or open-ended accounts such as credit cards.
Federal Trade Commission - Cite This Source - This Definition - Browse Related Terms: Back End Ratio (debt ratio), Front End Ratio, Housing Expense Ratio, housing expenses-to-income ratio, income-to-debt ratio, Mortgage Qualifying Ratio, Qualifying Ratios
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Real Estate - The amount of cash payment that is made by the insured (the homeowner) to cover a portion of a damage or loss. Sometimes also called "out-of-pocket expenses." For example, out of a total damage claim of $1,000, the homeowner might pay a $250 deductible toward the loss, while the insurance company pays $750 toward the loss. Typically, the higher the deductible, the lower the cost of the policy.
US Department of Housing and Urban Development - Cite This Source - This Definition - Browse Related Terms: Casualty Protection, Disclosures, Fire insurance, Flood Insurance, Hazard Insurance, Home Warranty, Homeowner's insurance, Insurance, Liability Insurance, Mortgage Life Insurance, Owner's Policy, Perils, Property insurance, Rollover, Title insurance
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Real Estate - 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 costs, time, and effort associated with foreclosure.
US Department of Housing and Urban Development - Cite This Source - This Definition - Browse Related Terms: Bankruptcy, debt, Financing, Gift, Global Debt Facility, Mutual Funds, Pre-foreclosure Sale, Soldiers and Sailors Civil Relief Act
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Real Estate - Same or similar to "mortgage." See "deed of trust" under "mortgage."
U.S. Census Bureau - Cite This Source - This Definition - A document, used in many states in place of a mortgage, held by a trustee pending repayment of the loan. The advantage of a deed of trust is that the trustee does not have to go to court to proceed with foreclosure should the borrower default on the loan.
Ginnie Mae - Cite This Source - This Definition - A legal document in which the borrower transfers the title to a 3rd party (trustee) to hold as security for the lender. When the loan is paid in full the trustee transfers title back to the borrower. If the borrower defaults on the loan the trustee will sell the property and pay the lender the mortgage debt.
Federal Trade Commission - Cite This Source - This Definition - Browse Related Terms: All-inclusive deed of trust, Community land trust, Investment trust, Mortgage holder, Real Estate Investment Trust (REIT), Real Estate Mortgage Investment Conduit (REMIC), Trust company, trust deed, trustee
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Real Estate - Money put down by a potential buyer to show that they are serious about purchasing the home; it becomes part of the down payment if the offer is accepted, is returned if the offer is rejected, or is forfeited if the buyer pulls out of the deal. During the contingency period the money may be returned to the buyer if the contingencies are not met to the buyer's satisfaction.
US Department of Housing and Urban Development - Cite This Source - This Definition - Browse Related Terms: Acceptance, Contingency, Counter-offer, earnest money, Earnest Money Deposit, escape clause, Homeowner's Warranty (HOW), Listing Agreement, Offer, Purchase and Sale Agreement, Ratified Sales Contract, Right of First Refusal, Walkthrough
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Real Estate - A contract between two or more parties where the security is dependent on the price of another investment.
US Department of Housing and Urban Development - Cite This Source - This Definition - Browse Related Terms: Agreement of sale, Contract for deed, Contract of sale, Contract to purchase, Indemnification, Installment contract, Land contract, Purchase agreement, Purchase Offer, Third mortgage, Transfer of Ownership
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Real Estate - The release of relevant information about a property that may influence the final sale, especially if it represents defects or problems. "Full disclosure" usually refers to the responsibility of the seller to voluntarily provide all known information about the property. Some disclosures may be required by law, such as the federal requirement to warn of potential lead-based paint hazards in pre-1978 housing. A seller found to have knowingly lied about a defect may face legal penalties.
US Department of Housing and Urban Development - Cite This Source - This Definition - Browse Related Terms: Casualty Protection, Deductible, Fire insurance, Flood Insurance, Hazard Insurance, Home Warranty, Homeowner's insurance, Insurance, Liability Insurance, Mortgage Life Insurance, Owner's Policy, Perils, Property insurance, Rollover, Title insurance
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