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Mortgage Insurance_Homes in Urban Renewal Areas
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
There were no mortgage endorsements in Fiscal Year 2005.
Uses and Use Restrictions
HUD insures lenders against loss on mortgage loans.
These loans may be used to finance acquisition or rehabilitation of one- to 11-family housing in approved urban renewal or code enforcement areas.
Maximum insurable loans for the occupant mortgagor are the same as prescribed for Section 203(b), plus $9,165 for each family unit over four.
Properties must be constructed or rehabilitated pursuant to an approved urban renewal plan.
Eligibility Requirements
Applicant Eligibility
All families 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 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
Application is submitted for review and approval or disapproval to the local HUD Field Office through a HUD- approved lending institution. This program is excluded from coverage under OMB Circular Nos. A-102 and A-110.
Award Procedures
See Application Procedure.
Deadlines
None.
Authorization
Housing Act of 1954, Public Law 83-560, 12 U.S.C. 1715(b), 1715(k).
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
Formula and Matching Requirements: For most families, the maximum amount of the loan is the same as under Section 203(b) - program 14.117. The downpayment is the difference between the maximum loan amount and the purchase price of the home, or the estimated value, whichever is less. In addition, the purchaser must pay all items of prepaid expense. Special terms are available for qualified veterans. A one-half percent mortgage insurance premium is required. The loan origination charge by the mortgagee varies but may not normally 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 under 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
86-4077-0-3-371.
Obigations
(Mortgages insured) Reported under program 14.133.
Range and Average of Financial Assistance
Maximum insurable loans for the occupant mortgagor are the same as prescribed for Section 203(b), plus $9,165 for each family unit over four.
Regulations, Guidelines, and Literature
"Fact Sheet; Urban Renewal Housing (Mortgage Insurance)," no charge; "Fact Sheet: Major Home Improvements (Loan Insurance)," no charge; 24 CFR 220.1 et seq.
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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