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Home Owner Programs
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Property Improvement Loan Insurance for Improving All Existing Structures and Building of New Nonres
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.
Program Accomplishments
In Fiscal Year 2007, HUD insured 2,970 loans.
Uses and Use Restrictions
HUD insures lenders against loss on loans.
Insured loans may be used to finance alterations, repairs, and improvements for existing structures and the building of new nonresidential structures which substantially protect or improve the basic livability or utility of the properties.
The maximum loan amount is $25,000 for improving a single family home or for improving or building a nonresidential structure.
For improving a multifamily structure, the maximum loan amount is $12,000 per family unit, not to exceed a total of $60,000 for the structure.
Eligibility Requirements
Applicant Eligibility
Eligible borrowers include the owner of the property to be improved, a lessee having a lease extending at least 6 months beyond maturity of the loan, or a purchaser of the property under a land installment contract.
Beneficiary Eligibility
Individuals/families.
Credentials/Documentation
The responsibility for credit approval of borrowers is exercised by HUD-insured lenders. 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
The borrower applies directly to an insured lender, or through a lender's approved dealer. This program is excluded from coverage under OMB Circular Nos. A-102 and A-110.
Award Procedures
None.
Deadlines
None.
Authorization
National Housing Act, Title I, Section 2, as amended, 12 U.S.C. 1703.
Range of Approval/Disapproval Time
HUD does not participate in the approval or disapproval of individual loans.
Appeals
Reapplication in case of refusal should be submitted to an approved lender.
Renewals
Not applicable.
Assistance Considerations
Formula and Matching Requirements
HUD insures private lenders against losses of up to 90 percent of any single loan with maximum insurance coverage limited to a total of 10 percent of the total amount insured. The interest rate is a negotiable interest rate agreed upon between the borrower and lender. The annual insurance charge is $1 per $100 of the amount advanced.
Length and Time Phasing of Assistance
Loans mature in 20 years and 32 days or earlier. Loans may be refinanced, but may not extend beyond 30 years from the date of the original note.
Post Assistance Requirements
Reports
None.
Audits
The Department of Housing and Urban Development reserves the right to audit the accounts of lenders in order to determine their compliance and conformance with HUD regulations and standards.
Records
Lenders are required to service and maintain records in accordance with acceptable lending practices of prudent lending institutions and the HUD regulations.
Financial Information
Account Identification
86-4077-0-3-371.
Obigations
(Loans insured) FY 07 $42,413,306; FY 08 est $54,367,000; and FY 09 est $54,367,000.
Range and Average of Financial Assistance
The maximum loan amount is $25,000 for improving a single family home or for improving or building a nonresidential structure. For improving a multifamily structure, the maximum loan amount is $12,000 per family unit, not to exceed a total of $60,000 for the structure.
Regulations, Guidelines, and Literature
"Fixing Up Your Home," HUD-52-H(7), no charge.
Information Contacts
Regional or Local Office
Contact HUD at 800-767-7468 for a program brochure #2651 and list of lenders.
Headquarters Office
None.
Criteria for Selecting Proposals
Not applicable.
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