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| Home | Ask Your Question | Mortgage Glossary | ||
DepreciationDecline in the value of a house due to wear and tear, obsolescence, adverse changes in the neighborhood, or any other reason. Depreciation is treated as an expense and is a line item on an income statement. Depreciation can only be applied to the building and not the land, since land does not wear out over time. Residential income property must be depreciated over a 27.5 year period using straight line depreciation. Commercial income property must be depreciated over 39 years using straight line depreciation. Straight line depreciation stipulates that an asset must be depreciated by equal amounts each year over its useful life.
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Related Mortgage Definitions: Equal Credit Oportunity Act Equal Credit Oportunity Act (ECOA) Is a federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status or receipt of income from public assistance programs. ... more... Section 8 Housing Section 8 Housing The Section 8 program began during the Great Depression to increase the housing choices available to very low-income households by making privately-owned rental housing affordable to them. It provides rent subsidies, either rental certificates or vouchers, on ... more... Section 8 Homeownership Program Section 8 Homeownership Program - American Dream Commitment Fannie-Mae and Freddie-Mac expand their underwriting requirements necessary for Freddie Mac to purchase mortgages originated under the Section 8 Homeownership Program, and pledge funds in form of Section 8 vouchers, also ... more... Income Property Income Property A real estate property that produces an income stream from residential or commercial rentals and profits attributable to real estate other than rent. ... more... |
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