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.
In Fiscal Year 2007, HUD insured 18,242 loans.
Uses and Use Restrictions
HUD insures lenders against loss on mortgage loans.
These loans may be used to finance the acquisition of individual units in proposed or existing condominium projects containing four or more units.
The maximum insurable loan for an occupant mortgagor is the same as Section 203(b) - Program 14.117.
With respect to a unit in any project which was converted from rental housing, no insurance may be provided under this section unless: (1) The conversion occurred more than 1 year prior to the application for insurance; (2) the mortgagor or co-mortgagor was a tenant of that rental housing; or (3) the conversion of the property is sponsored by a bona fide tenant's organization representing a majority of the households in the project.
All families are eligible to apply.
Documentation regarding the function and characteristics of the project and 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
An environmental assessment is required for a proposed project under this program.
Owner-occupancy requirements apply as do requirements for transfer of rights to the homeowner association.
Eighty percent of HUD-insured mortgages in the project must be made to owner-occupants.
This program is excluded from coverage under OMB Circular No.
This program is excluded from coverage under E.O.
Application is submitted for review and approval to the local HUD Field Office through a HUD-approved lending institution. This program is excluded from coverage under OMB Circular No. A-110.
See Application Procedure.
National Housing Act, as amended, Section 234(c), Public Law 87-70, 75 Stat. 149, 1968, Public Law 90-448, 82 Stat. 476, 507, 1969, Public Law 91-152, 83 Stat. 379, 384.
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 203(b) - Program 14.117. The downpayment is equal to the difference between the maximum loan amount and the purchase price of the unit. The loan origination charge by the mortgagee varies, but may not exceed one percent of the total mortgage amount. Risk based premiums are collected including 1) an upfront premium that may be financed and 2) a periodic premium that is paid monthly.
Length and Time Phasing of Assistance
The mortgage term may extend for 30 years, except 35 years if the mortgagor is unacceptable under a 30-year term.
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 institutions and the HUD regulations.
(Mortgages insured) FY 07 $27,573,476,420; FY 08 est $20,361,187,000; and FY 09 reported under program 14.117.
Range and Average of Financial Assistance
The maximum amount of the loan is the same as under 203(b) - Program 14.117.
Regulations, Guidelines, and Literature
"Guide To Single Family Home Mortgage Insurance," no charge; Questions about Condominiums, HUD 365-H(7), no charge; 24 CFR 234.
Regional or Local Office
Persons are encouraged to contact the Homeownership Center serving their State (see http://www.hud.gov/offices/hsg/sfh/hoc/hsghocs.cfm) or the nearest local HUD Office. See Catalog Address Appendix IV for a list of Offices.
Criteria for Selecting Proposals
Former Shadow Housing Minister Jack Dromey beseeches increase in investment for social enterprise to strengthen communities.