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14.119 Mortgage Insurance_Homes for Disaster Victims
HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
National Housing Act, as amended, Section 203(b), Public Law 73-479, 12 U.S.C. 1709, 1715(b).
To help victims of a major disaster undertake homeownership on a sound basis.
TYPES OF ASSISTANCE:
USES AND USE RESTRICTIONS:
HUD insures lenders against loss on mortgage loans. These loans may be used to finance the purchase or reconstruction of a one-family home that will be the principal residence of a borrower that is a victim of a major disaster. The maximum insurable loan for such an occupant mortgagor is the same as prescribed for Section 203(b) (14.117). Disaster victims are not required to meet the 3 percent minimum investment requirements. In order to qualify for assistance, the formerly occupied home must have been in an area designated by the President as a disaster area, and it must have been destroyed or damaged to such an extent that reconstruction or replacement is necessary.
Applicant Eligibility: Anyone that is a victim of a major disaster as designated by the President is eligible to apply.
Pre-application Coordination: None. This program is excluded from coverage under E.O. 12372.
Formula and Matching Requirements: The maximum amount of the loan is 100 percent of the HUD estimated value. No downpayment is required. As of July 1, 1991, risk-based mortgage insurance premiums will be collected including: 1) An up-front premium which may be financed and 2) a periodic premium which is paid monthly. The origination charge by the mortgage varies, but may not exceed one percent of the total mortgage. Mortgagors may be charged appraisal and inspection fees in accordance with fee schedules established by HUD.
POST ASSISTANCE REQUIREMENTS:
Reports: Defaults in meeting the mortgage terms must be reported. All approved mortgages at any time upon request by HUD must furnish a copy of their latest financial statement.
Account Identification: 86-4587-0-3-371.
Because only a small number of loans are insured under this program, annual activity is not tracked.
REGULATIONS, GUIDELINES, AND LITERATURE:
"Guide To Single Family Home Mortgage Insurance," no charge; 24 CFR 203.18(e).
Regional or Local Office: None. For additional information, individuals are encouraged to contact the FHA Resource Center by phone at 1-800-CALLFHA (1-800-225-5342), by email at email@example.com or visit the FHA Resource Center site at http://portal.hud.gov/hudportal/HUD?src=/FHAFAQ.
EXAMPLES OF FUNDED PROJECTS:
CRITERIA FOR SELECTING PROPOSALS: