Content provided by the Catalog of Federal Domestic Assistance
14.122 Mortgage Insurance_Homes in Urban Renewal Areas
HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Housing Act of 1954, Public Law 83-560, 12 U.S.C. 1715(b), 1715(k).
To help families purchase or rehabilitate homes in urban renewal areas.
TYPES OF ASSISTANCE:
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.
Applicant Eligibility: All families are eligible to apply.
Pre-application Coordination: None. This program is excluded from coverage under E.O. 12372.
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 mortgage 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.
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: 86-4077-0-3-371.
Because of the small number of loans in any given year, the data is lumped into the number of loans insured under Section 203(b).
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.
Regional or Local Office: None. Persons are encouraged to contact the nearest local HUD Office.
EXAMPLES OF FUNDED PROJECTS:
CRITERIA FOR SELECTING PROPOSALS: