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Gap Loan

          Any loan filling the deficiency created when the permanent financing and the equity are unable to                   cover the total cost of a project.

General Lien

          A lien which attaches to all property owned by the debtor.

Good Funds Act

          Requires Escrow to clear all funds and checks before closing.

Government Loan (Mortgage)

          A mortgage that is insured by the Federal Housing Administration (FHA) or guaranteed by the                       Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Mortgages that are not                  government loans are classified as conventional loans.

Government National Mortgage Association (Ginnie Mae or GNMA)

          A federal Agency which provides special assistance for federally aided housing programs; active in               the secondary money market for government subsidized housing programs.

Graduated Lease

          A lease that provides for periodic increases of rent at regular intervals.

Graduated Mortgage

          One where monthly payments start low and increase over time.

Grant

          A transfer of real property.

Grantee

          The purchaser; the person to whom an interest in realty is conveyed.

Grantor

          The seller; the person who conveys an interest in realty by deed.

Great Mahele

          A division of Hawaiian lands which occurred in 1848 during the reign of King Kamehameha III.

GRI

          The professional designation of Graduate, Realtors Institute, earned by completion of prescribed                   courses of study conducted by state boards of Realtors.

Gross Income

          Total income derived from a business or income property before expenses are deducted.

Gross Lease

          A lease of property in which the lessor meets all property charges incurred through ownership.

Ground Lease

          A lease for the use of the land, usually providing for improvements to be placed on the land by the                 user.

Ground Rent

          The net rent paid for a parcel of unimproved land; that portion of the total rental is considered to                     represent a return upon the land only.

Harbendum Clause

          The portion of a deed beginning “to have and to hold,” which usually follows the granting clause, and             explains or limits the estate granted.

Hawaii Real Property Tax (HARPTA)

          An amount withheld from sale of Hawaii property belonging to a non- resident seller.

Hazard Insurance

          Insurance coverage that in the event of physical damage to a property from fire, wind, vandalism, or             other hazards.

Heir

          One who succeeds to the estate.

Hereditaments

          Every sort of inheritable property whether corporeal, incorporeal, real, personal or mixed.

Highest and Best Use

          That use of land, which at the time of an appraisal is most likely to produce the greatest net return                 over a given period of time.

Holding Escrow

          An arrangement whereby escrow holds the final title documents pursuant to an agreement of sale.

Holdover Tenant

          A tenant who remains in possession of a property after expiration of lease term.

Holographic Will

          A will written in hand by the person leaving the will and not witnessed.

 Home Equity Conversion Mortgage (HECM)

          Usually referred to as a reverse annuity mortgage, what makes this type of mortgage unique is that               instead of making payments to a lender, the lender makes payments to you. It enables older home               owners to convert the equity they have in their homes into cash, usually in the form of monthly                     payments. Unlike traditional home equity loans, a borrower does not qualify on the basis of income but           on the value of his or her home. In addition, the loan does not have to be repaid until the borrower no             longer occupies the property.

Home Equity Line of Credit

          A mortgage loan, usually in second position, that allows the borrower to obtain cash drawn against the           equity of his home, up to a predetermined amount.

Home Inspection

          A thorough inspection by a professional that evaluates the structural and mechanical condition of a               property. A satisfactory home inspection is often included as a contingency by the purchaser.

Homeowners' Association

          A nonprofit association that manages the common areas of a planned unit development (PUD) or                  condominium project. In a condominium project, it has no ownership interest in the common elements.          In a PUD project, it holds title to the common elements.

Homeowner's Insurance

          An insurance policy that combines personal liability insurance and hazard insurance coverage for a               dwelling and its contents.

Homeowner's Warranty

          A type of insurance often purchased by home buyers that will cover repairs to certain items, such as             heating or air conditioning, should they break down within the coverage period. The buyer often                     requests the seller to pay for this coverage as a condition of the sale, but either party can pay.

Homestead

          A right given to a householder or head of a family to designate real estate as his homestead and said             homestead is exempt, up to a stated amount, from execution by his creditors; a tract of land whose               ownership has been established under the provisions of the Homestead Act.

Homogeneous

          The same or similar kind, as used in appraising; homogeneity tends to stabilize values in an area.

Horizontal Property Regime

          The name once given to the laws pertaining to condominiums in the State of Hawaii; horizontal layers           of ownership, now called the Condominium Property Regime.

Hula Mae

          The Hawaii Housing Authority issued tax-exempt revenue bonds to fund a mortgage loan program,                 offering first-time buyers interest rates below conventional rates by way of the Housing and Loan                   Mortgage Act.

HUD Median Income

          Median family income for a particular county or metropolitan statistical area (MSA), as estimated by             the Department of Housing and Urban Development (HUD).

HUD-1 Settlement Statement

          A document that provides an itemized listing of the funds that were paid at closing. Items that appear           on the statement include real estate commissions, loan fees, points, and initial escrow (impound)                 amounts. Each type of expense goes on a specific numbered line on the sheet.  The totals at the                 bottom of the HUD-1 statement define the seller's net proceeds and the buyer's net payment at                     closing. It is called a HUD1 because the form is printed by the Department of Housing and                           Urban Development (HUD). The HUD1 statement is also known as the "closing statement" or                       "settlement sheet."

Hypothecate

          To place property as security; to mortgage.

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​Pahoa, HI 96778
Phone: (808) 965-9903
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