Mortgage Insurance_Homes for Disaster Victims

To help victims of a major disaster undertake homeownership on a sound basis.


Agency - Department of Housing and Urban Development

The Department of Housing and Urban Development's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. HUD fulfills this mission through high ethical standards, management and accountability, and by forming partnerships with community organizations.

Office - Persons are encouraged to contact the Homeownership Center serving their State, or the nearest local HUD Office.

See Catalog Address Appendix IV for a list of offices.


Program Accomplishments

The maximum amount of the loan is 100 percent of the HUD estimated value. No loans were insured under this program in FY 2006.

Uses and Use Restrictions

HUD insures lenders against loss on mortgage loans.

These loans may be used to finance the purchase or reconstruction of a one-family home that will be the principal residence of a borrower that is a victim of a major disaster.

The maximum insurable loan for such an occupant mortgagor is the same as prescribed for Section 203(b) (14.117).

Disaster victims are not required to meet the 3 percent minimum investment requirements.

In order to qualify for assistance, the formerly occupied home must have been in an area designated by the President as a disaster area, and it must have been destroyed or damaged to such an extent that reconstruction or replacement is necessary.



Eligibility Requirements

Applicant Eligibility

Anyone that is a victim of a major disaster as designated by the President is eligible to apply.

Beneficiary Eligibility

Families or individuals that are victims of a major disaster as designated by the President.

Credentials/Documentation

Documentation regarding the characteristics of the property and the qualifications of the mortgagor are assembled by the mortgagee and submitted with the application. This program is excluded from coverage under OMB Circular No. A-87.

Aplication and Award Process

Preapplication Coordination

None.

This program is excluded from coverage under E.O.

12372.

Application Procedures

An FHA-approved lender submits the application for review and approval or disapproval to the local HUD Field Office. This program is excluded from coverage under OMB Circular Nos. A-102 and A-110.

Award Procedures

Application is submitted for review and approval or disapproval to the local HUD Field Office through a HUD approved lending institution. In addition, certain lending institutions have been approved to review applications and issue an approval or rejection, without additional HUD intervention. This program is referred to as Direct Endorsement. This program is excluded from coverage under OMB Circular No. A-110.

Deadlines

None.

Authorization

National Housing Act, as amended, Section 203(h), Public Law 73-479, 12 U.S.C. 1709, 1715(b).

Range of Approval/Disapproval Time

Varies.

Appeals

HUD will state the reasons for refusing an application. The applicant may reapply subject to concurrence of the lender.

Renewals

Not applicable.

Assistance Considerations

Formula and Matching Requirements

The maximum amount of the loan is 100 percent of the HUD estimated value. No downpayment is required. As of July 1, 1991, risk-based mortgage insurance premiums will be collected including: 1) An up-front premium which may be financed and 2) a periodic premium which is paid monthly. The origination charge by the mortgagee varies, but may not exceed one percent of the total mortgage. Mortgagors may be charged appraisal and inspection fees in accordance with fee schedules established by HUD.

Length and Time Phasing of Assistance

The mortgage term may extend for 30 years, except 35 years if the mortgagor is unacceptable for a 30-year term and the property was constructed subject to HUD or VA inspection.

Post Assistance Requirements

Reports

Defaults in meeting the mortgage terms must be reported.

All approved mortgagees at any time upon request by HUD must furnish a copy of their latest financial statement.

Audits

The Department of Housing and Urban Development reserves the right to audit the account of the mortgagee to determine its compliance and conformance with HUD regulations and standards.

Records

Mortgagees are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and the HUD regulations.

Financial Information

Account Identification

86-4587-0-3-371.

Obigations

Reported under program 14.117.

Range and Average of Financial Assistance

The maximum amount of the loan is 100 percent of the HUD estimated value. No loans were insured under this program in FY 2006.

Regulations, Guidelines, and Literature

"Guide To Single Family Home Mortgage Insurance," no charge; 24 CFR 203.18(e).

Information Contacts

Regional or Local Office

Persons are encouraged to contact the Homeownership Center serving their State, or the nearest local HUD Office. See Catalog Address Appendix IV for a list of offices.

Headquarters Office

None.

Criteria for Selecting Proposals

Not applicable.



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Edited by: Michael Saunders

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