FEDERAL
AGENCY:
HOUSING,
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AUTHORIZATION:
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:
Guaranteed/Insured Loans.
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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.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: All families 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.
APPLICATION
AND AWARD PROCESS:
Pre-application
Coordination: None. This program is excluded
from coverage under E.O. 12372.
Application
Procedure: Application is submitted for review
and approval or disapproval to the local HUD Field Office through
a HUD- approved lending institution. This program is excluded
from coverage under OMB Circular Nos. A-102 and A-110.
Award
Procedure: See Application Procedure.
Deadlines:
None.
Range
of Approval/Disapproval Time: Varies.
Appeals:
HUD will state the reasons for refusing an application. The applicant
may reapply subject to concurrence of the lender.
Renewals:
Not applicable.
ASSISTANCE
CONSIDERATIONS:
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.
Length
and Time Phasing of Assistance: The mortgage
term may extend for 30 years, except 35 years if the mortgagor
is unacceptable under a 30 year term and the property was constructed
subject to HUD or VA inspection.
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.
Audits:
The Department of Housing and Urban Development reserves the right
to audit the account of the mortgage to determine its compliance
and conformance with HUD regulations and standards.
Records:
Mortgages are required to service and maintain records in accordance
with acceptable mortgage practices of prudent lending institutions
and the HUD regulations.
FINANCIAL
INFORMATION:
Account
Identification: 86-4077-0-3-371.
Obligations:
(Mortgages insured) Reported under program 14.133.
Range
and Average of Financial Assistance:
See Uses
and Use Restrictions.
PROGRAM
ACCOMPLISHMENTS:
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.
INFORMATION
CONTACTS:
Regional
or Local Office: Persons are encouraged to contact
the Homeownership Center serving their State, or the nearest local
HUD Office. See Catalog Address Appendix IV for a list of offices.
Headquarters
Office: None.
Web
Site Address: http://www.hud.gov/fha/sfh/sf_home.html
EXAMPLES
OF FUNDED PROJECTS:
Not applicable.
CRITERIA
FOR SELECTING PROPOSALS:
Not applicable.
