Adjustable Rate Mortgages
To provide mortgage insurance for an adjustable rate mortgage which offers lower than market interest rate initially, which remains constant for an initial period of 1, 3, 5, 7 or 10 years. The interest rate may then change annually for the remainder of the mortgage term. The loan structure provides built-in limits or safeguards for both consumers and lenders, designed to minimize the effect of any rapid rise in interest rates.
General information about this opportunity
Last Known Status
Agency: Department of Housing and Urban Development
Office: Office of Housing-Federal Housing Commissioner
Type(s) of Assistance Offered
National Housing Act.
Who is eligible to apply/benefit from this assistance?
All persons intending to occupy the property are eligible to apply.
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 2 CFR 200, Subpart E - Cost Principles.
What is the process for applying and being award this assistance?
Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Application is submitted for review and approval or disapproval to the local HUD Field Office through a HUD-approved lending institution.
See Application Procedure.
Approval/Disapproval Decision Time
The lender will state the reasons for refusing an application. The applicant may reapply to another lender.
How are proposals selected?
How may assistance be used?
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. The maximum insurable mortgage loan for an occupant mortgagor is the same as prescribed for Section 203(b) - program 14.117.
What are the requirements after being awarded this opportunity?
Mortgagees are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and the HUD regulations.
Other 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.
Who do I contact about this opportunity?
Regional or Local Office
None. For additional information, individuals are encouraged to contact the FHA Resource Center by phone at 1-800-CALL-FHA (1-800-225-5342), by email at firstname.lastname@example.org or visit the FHA Resource Center site at http://portal.hud.gov/hudportal/HUD?src=/FHAFAQ.
Wanda L. Sampedro 451 7th Street, SW, Washington, District of Columbia 20410 Email: email@example.com
Phone: (800) 225-5342.
(Sale, Exchange, or Donation of Property and Goods) FY 14 Not Separately Identifiable(Exp: Reported under 14.117); FY 15 Not Separately Identifiable(Exp: Reported under 14.117); and FY 16 Not Separately Identifiable - Reported Under 14.117.
Range and Average of Financial Assistance
No Data Available.
Regulations, Guidelines and Literature
Examples of Funded Projects