Here are 15 terms you should know to help you navigate your housing journey with confidence.
- Affordable Housing
Homes or apartments reasonably priced for people with lower to moderate incomes. They are often subsidized by the government to make them more affordable.
- Foreclosure
Occurs when a homeowner is unable to pay their mortgage. The bank or lender can take ownership of the home and sell it. This is a long process and can be prevented by seeking assistance.
- Eviction
When a landlord asks a tenant to leave their rental home. This usually happens if the tenant doesn’t pay rent or violates the terms of the lease.
- Lease
A legal agreement between a tenant and a landlord that outlines the rules of renting a home. It includes details like how long you’ll rent, how much rent you’ll pay, and what your responsibilities are as a tenant.
- Down Payment
A down payment is made when you buy a home. It is a percentage of the full price that you pay upfront. The larger the down payment, the less money you’ll need to borrow for your mortgage.
- Mortgage
A loan you take out to buy a home. You agree to pay the loan back over time, usually 15 to 30 years, with interest. If you don’t make your payments, it will lead to foreclosure.
- Equity
Equity is the part of your home that you truly own. As you make payments on your mortgage, your equity increases.
- Credit Score
A number that reflects your credit history and how reliable you are at paying bills. Lenders use this score to decide whether to approve you for a mortgage or loan. A higher score makes it easier to borrow money.
- Housing Counseling
A service that helps people understand their rights and responsibilities during your housing journey. Counselors can help you avoid foreclosure, find affordable housing, and understand how to manage your finances.
- Tenant Rights
The legal protections that renters have. These can include the right to a safe home, protection against unfair eviction, and the right to be treated with respect by the landlord.
- Subsidized Housing
Affordable housing that is supported by government programs. These programs help pay part of the rent for eligible low-income families, making it easier to afford a safe place to live.
- Landlord
A person or company that owns a property and rents it out to tenants. They are responsible for maintaining the property.
- Homeowner’s Association (HOA)
A group that oversees a neighborhood or community. They set rules for how homes and common areas should look and function.
- Inspection
When a professional checks a home for any problems or needed repairs. This is an important step when buying or renting a home because it helps you understand the condition of the property.
- Vacancy Rate
The number of homes or apartments available for rent or sale in a certain area. A high vacancy rate means there are many places to choose from. A low vacancy rate means homes are in high demand.
Understanding these housing terms can help you make better decisions about where you live.
