Mortgage Insurance-Homes (14.117)

Program

14.117 Mortgage Insurance-Homes

Federal Agency

Agency: Department of Housing and Urban Development
Office: Office Of Housing-federal Housing Commissioner

Authorization

National Housing Act, as amended, Section 203(b), Public Law 73-479, 12 U.S.C. 1709, 1715(b).

Program Number

14.117

Last Known Status

Active

Objectives

To help people undertake home ownership.

Types of Assistance

GUARANTEED/INSURED LOANS

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: In areas where 125 percent of the median house price is less than 65 percent of the Freddie Mac limit ($417,000), FHA �floor� limits are set at the 65 percent limit as follows: one-family $271,050; two-family $347,000; three-family $419,400; and four-family $521,250. Any area where the limits exceed the floor is known as a �high cost� area. In areas where 125 percent of the median house price exceeds the 175 percent limit of $729,000 for a one unit property, the mortgage limits are set at the 175 percent amount (ceiling)as follows: one-family $729,750; two-family $934,200; three-family $1,129,250; and four-family $1,403,400. 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. This program is excluded from coverage under OMB Circular No. A-87.

Application and Award Process

Preapplication Coordination

Preapplication coordination is required. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.

Application Procedure

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. 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 Procedure

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

Not Applicable.

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

This program has no statutory formula.

Matching requirements are not applicable to this program.

MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

The mortgage term may extend for 30 years. Method of awarding/releasing assistance: quarterly.

Post Assistance Requirements

Reports

Audits

Not Applicable.

Records

Mortgagees are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and the FHA regulations.

Program Accomplishments

Fiscal Year 2008: FHA insured 1,032,477 loans in Fiscal Year 2008. Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available

Financial Information

Account Identification

86-4587-0-3-371.

Obligations

(Sale, Exchange, or Donation of Property and Goods) FY 08 $171,875,000,000; FY 09 est $315,000,000,000; FY 10 est $330,000,000,000

Range and Average of Financial Assistance

Maximum insurable loans are as follows: In areas where 125 percent of the median house price is less than 65 percent of the Freddie Mac limit ($417,000), FHA �floor� limits are set at the 65 percent limit as follows: one-family $271,050; two-family $347,000; three-family $419,400; and four-family $521,250. Any area where the limits exceed the floor is known as a �high cost� area. In areas where 125 percent of the median house price exceeds the 175 percent limit of $729,000 for a one unit property, the mortgage limits are set at the 175 percent amount (ceiling)as follows: one-family $729,750; two-family $934,200; three-family $1,129,250; and four-family $1,403,400.

Regulations, Guidelines and Literature

100 Questions and Answers About Buying a New Home, no charge; The HUD Home Buying Guide, no charge; Residential Rehabilitation Program, no charge; Fact Sheet: Rehabilitation Mortgage Insurance, no charge. 24 CFR 203.50.

Related Programs

14.108 Rehabilitation Mortgage Insurance; 14.133 Mortgage Insurance_Purchase of Units in Condominiums; 14.163 Mortgage Insurance_Single Family Cooperative Housing

Information Contacts

Regional or Local Office

None. 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

Wanda L. Sampedro, 451 7th Street, SW, Washington, District of Columbia 20410 Email: wanda.sampedro@hud.gov Phone: (202) 402-2324.

Web Site Address

http://www.hud.gov/offices/hsg/sfh/ins/singlefamily.cfm.

Examples of Funded Projects

Not Applicable.

Criteria for Selecting Proposals

Not Applicable.