Mortgage Insurance_Homes
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.
See Catalog Address Appendix IV for a list of offices.
Program Accomplishments
FHA insured 403,098 loans 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 one-to- four-family housing, as well as to refinance indebtedness on existing housing.
Maximum insurable loans are as follows: one-family $200,160; two family $256,248; three-family $309,744; and four-family $384,936; except that the Secretary may increase the preceding maximum dollar amounts on an area-by-area basis to the extent the Secretary deems necessary, after taking into consideration the extent to which moderate and middle income persons have limited housing opportunities in the area due to high prevailing housing sales prices, but in no case may such limits, as so increased, exceed the lesser of (A) 87 percent of the Federal National Mortgage Association's Conforming Loan Limit, or (B) in the case of a one-family residence, 95 percent of the median one-family house price in the area, as determined by the Secretary; in the case of a two-family residence, 107 percent of such median price; in the case of a three-family residence, 130 percent of such median price; or in the case of a four-family residence, 150 percent of such median price.
Designated areas of limited housing opportunities and maximum mortgage amounts may be obtained from local HUD Offices.
Eligibility Requirements
Applicant Eligibility
All persons intending to occupy the property are eligible to apply.
Beneficiary Eligibility
Individuals/families.
Credentials/Documentation
Documentation regarding the characteristics of the property and the qualifications of the mortgagor are assembled by the mortgage and submitted with the application. This program is excluded from coverage under OMB Circular No. A-87.
Aplication and Award Process
Preapplication Coordination
This program is excluded from coverage under OMB Circular No.
A-102.
This program is excluded from coverage under E.O.
12372.
Application 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.
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(b), Public Law 73-479, 12 U.S.C. 1709, 1715(b).
Range of Approval/Disapproval Time
Varies.
Appeals
The lender or HUD will state the reason for refusing an application. The applicant may reapply subject to concurrence of the lender.
Renewals
Not applicable.
Assistance Considerations
Formula and Matching Requirements
For most families, the maximum amount of the loan is the property's sales price (or appraised value, if less) exclusive of any borrower paid closing costs multiplied by a percent that is determined by the sales price or value if less and the average closing cost for the State. This determines the maximum mortgage that FHA will ensure, provided the mortgagor makes a cash investment of at least 3 percent into the property which may include closing costs. The downpayment is the difference between the maximum loan amount and the purchase price of the home. In addition to the downpayment, the purchaser must pay for all items of prepaid expense. Risk-based mortgage insurance premiums are collected including: 1) an up-front premium which may be financed and 2) a periodic premium which is paid monthly. The loan origination charge by the mortgage varies, but may not exceed one percent of the total mortgage (minus the mortgage insurance premium, if being financed). Mortgagors may be charged appraisal and inspection fees in accordance with fee schedules established by HUD. This program has maintenance of effort (MOE)requirements, see funding agency for further details.
Length and Time Phasing of Assistance
The mortgage term may extend for 30 years.
Post Assistance Requirements
Reports
Defaults in meeting the mortgage terms must be reported.
All approved mortgagees at any time upon request by FHA 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 FHA regulations and standards.
Records
Mortgagees are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and the FHA regulations.
Financial Information
Account Identification
86-4587-0-3-371.
Obigations
(Mortgages insured) FY 07 $56,518,703,000; FY 08 est $72,172,152,000; and FY 09 est $151,280,082,000.
Range and Average of Financial Assistance
Maximum insurable loans are as follows: one-family $200,160; two-family $256,248; three-family $309,744; and four-family $384,936; except that the Secretary may increase the preceding maximum dollar amounts on an area-by-area basis to the extent the Secretary deems necessary, after taking into consideration the extent to which moderate and middle income persons have limited housing opportunities in the area due to high prevailing housing sales prices, but in no case may such limits, as so increased, exceed the lesser of (A) 87 percent of the Federal National Mortgage Association's Conforming Loan Limit, or (B) in the case of a one-family residence, 95 percent of the median one-family house price in the area, as determined by the Secretary; in the case of a two-family residence, 107 percent of such median price; in the case of a three-family residence, 130 percent of such median price; or in the case of a four-family residence, 150 percent of such median price.
Regulations, Guidelines, and Literature
HUD Residential Rehabilitation Program, no charge; Fact Sheet: Rehabilitation Mortgage Insurance, no charge. 24 CFR 203.50.
Information Contacts
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.
Headquarters Office
None.
Criteria for Selecting Proposals
Not applicable.
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