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.
No new loans were insured in Fiscal Year 2007.
Uses and Use Restrictions
HUD insures lenders against loss on mortgage loans.
These loans may be used to finance the purchase of proposed, under construction, or existing single family housing, as well as to refinance indebtedness on existing housing, provided certain conditions are met.
The maximum insurable mortgage loan for an occupant mortgagor is the same as prescribed for Section 203(b) - Program 14.117.
All persons intending to occupy the property are eligible to apply.
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
This program is excluded from coverage under E.O.
Application is submitted for review and approval or disapproval to the local HUD Field Office through a HUD- approved mortgagee lending institution. This program is excluded from coverage under OMB Circular Nos. A-102 and A-110.
See Application Procedure.
National Housing Act, as amended, Section 245(a).
Range of Approval/Disapproval Time
HUD will state the reasons for refusing an application. The applicant may reapply subject to concurrence of the lender.
Formula and Matching Requirements
The maximum amount of the loan is the same as under Section 203(b) - Program 14.117. The down payment is the difference between the maximum loan amount and the purchase price of the home. In addition to the down payment, the purchaser must pay for all items of prepaid expense. 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. If property is a condominium unit; the mortgage insurance premium is one-half percent paid monthly. The loan origination charge by the mortgagee varies, but may not exceed one percent of the total mortgage (minus the mortgage insurance premium, if financed). Mortgagors may be charged appraisal and inspection fees in accordance with fee schedules established by HUD.
Length and Time Phasing of Assistance
The Mortgage terms vary according to the plan chosen.
Post Assistance Requirements
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.
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.
Mortgagees are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending instructions and the HUD regulations.
(Mortgages insured) Reported under program 14.117.
Range and Average of Financial Assistance
The maximum amount of the loan is the same as under Section 203(b) - Program 14.117.
Regulations, Guidelines, and Literature
Departmental memorandums dated June 4 and July 15, 1982.
Regional or Local Office
Persons are encouraged to contact the Homeownership Center (see
http://www.hud.gov/offices/hsg/sfh/hoc/hsghocs.cfm) serving their State,
or the nearest local HUD Office. See Catalog Address Appendix IV for a
list of Offices.
Criteria for Selecting Proposals