Mortgage Insurance Rental Housing

 

HUD insures mortgage loans to finance the construction or rehabilitation of a broad range of multifamily rental housing through a variety of programs linked in the Related Federal Assistance section. Though Section 207 itself is no longer active, this assistance listing is used to provide total FHA multifamily mortgage commitments across those programs. Due to challenges in breaking out projected commitments by each listing, the activity is summed and reported here.

Active 14.134 Office of Housing-Federal Housing Commissioner, Department of Housing and Urban Development F - Guaranteed/Insured Loans Not applicable. National Housing Act, as amended, Section 207, Public Law 75-424, 12 U.S.C. 1713.
Section 207 was authorized by the National Housing Act. Regulations are found at 24 CFR, Section 200 and Section 207. Eligible mortgagors include investors, builders, developers, and others who meet HUD requirements for mortgagors. All families eligible to occupy dwellings in a structure whose mortgage is insured under the program, subject to normal tenant selection. A borrower, also called a sponsor, submits a firm commitment application through a HUD-approved lender for processing. Considerations include market need, zoning, architectural merits, capabilities of the borrower, availability of community resources, etc. If the proposed project meets program requirements, the local Multifamily Hub or Satellite Office issues a commitment to the lender for mortgage insurance. Preapplication coordination is not applicable. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. The sponsor submits an application according to MAP Guide guidelines which details how a Firm Commitment application is submitted to the local HUD Multifamily Hub or Satellite Office for processing. If the project meets program requirements, the local HUD Multifamily Hub or Satellite Office issues a commitment to the lender to insure the mortgage. Not applicable. Not applicable. Not applicable. Not applicable. Not applicable. Section 207 insures lenders against the loss on mortgage defaults. Section 207 mortgage insurance, although still authorized, is no longer used for new construction and substantial rehabilitation. It is however, the primary vehicle for the Section 223(f) refinancing program. Multifamily new construction and substantial rehabilitation projects are currently insured under Section 221(d)(3) and Section 221(d)(4) programs. Insured mortgages may be used to finance the construction or rehabilitation of rental detached, semidetached, row, walk-up, or elevator type structures with 5 or more units. The program has statutory per unit mortgage limits which vary according to the size of the unit, the type of structure, and the location of the project. There are also loan-to-value and debt service limitations. Not applicable. The Department of Housing and Urban Development reserves the right to audit the accounts of either the mortgagee or mortgagor in order to determine their compliance and conformance with HUD regulations and standards. Mortgagees are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and the HUD regulations. Statutory Formula: Title 24 cfr Part 207

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing. New Construction and Substantial Rehabilitation mortgages are no longer insured under Section 207. For those existing subsection mortgage programs, e.g., 223(f), Refinancings (14.155), the mortgage term is generally 35 years subject to useful life restrictions. Provided over the life of mortgage as below-market interest rate and term. Persons are encouraged to communicate with Multifamily Hub or Satellite Office with jurisdiction for the proposed property. HUD Multifamily Hubs and Satellite Offices are listed at https://www.hud.gov/program_offices/housing/mfh/hsgmfbus/abouthubspcs Thomas Bernaciak
451 Seventh Street SW
washington, DC 20410 US
thomas.a.bernaciak@hud.gov
Phone: (202) 402-3242 https://www.hud.gov/program_offices/housing/mfh 86-4077-0-3-371 (Guaranteed/Insured Loans) FY 22$22,664,000,000.00; FY 23 est $19,214,000,000.00; FY 24 est $17,513,000,000.00; FY 21$25,169,987,485.00; FY 20$4,216,973,933.00; FY 19$7,640,000,000.00; - Figures above are consolidations of amounts under both 14.126, 14.135, 14.138, 14.139, 14.151, 14.155 and 14.188 programs. Not applicable/available. 24 CFR 207 et seq. HUD MAP Guide.