FEDERAL AGENCY:

HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

AUTHORIZATION:

National Housing Act, Title I, Section 2, as amended, 12 U.S.C. 1703.

OBJECTIVES:

To facilitate the financing of improvements to homes and other existing structures and the building of new nonresidential structures.

TYPES OF ASSISTANCE:

Guaranteed/Insured Loans. Place Cursor Here for Definition

USES AND USE RESTRICTIONS:

HUD insures lenders against loss on loans. Insured loans may be used to finance alterations, repairs, and improvements for existing structures and the building of new nonresidential structures which substantially protect or improve the basic livability or utility of the properties. The maximum loan amount is $25,000 for improving a single family home or for improving or building a nonresidential structure. For improving a multifamily structure, the maximum loan amount is $12,000 per family unit, not to exceed a total of $60,000 for the structure.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   Eligible borrowers include the owner of the property to be improved, a lessee having a lease extending at least 6 months beyond maturity of the loan, or a purchaser of the property under a land installment contract.

Beneficiary Eligibility:   Individuals/families.

Credentials/Documentation:   The responsibility for credit approval of borrowers is exercised by HUD-insured lenders. This program is excluded from coverage under OMB Circular No. A-87.

Pre-application Coordination:   None. This program is excluded from coverage under E.O. 12372.

Application Procedure:   The borrower applies directly to an insured lender, or through a lender's approved dealer. This program is excluded from coverage under OMB Circular Nos. A-102 and A-110.

Award Procedure:   None.

Deadlines:   None.

Range of Approval/Disapproval Time:   HUD does not participate in the approval or disapproval of individual loans.

Appeals:   Reapplication in case of refusal should be submitted to an approved lender.

Renewals:   Not applicable.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   HUD insures private lenders against losses of up to 90 percent of any single loan with maximum insurance coverage limited to a total of 10 percent of the total amount insured. The interest rate is a negotiable interest rate agreed upon between the borrower and lender. The annual insurance charge is $1 per $100 of the amount advanced. This program has maintenance of effort (MOE) requirements; see funding agency for further details.

Length and Time Phasing of Assistance:   Loans mature in 20 years and 32 days or earlier. Loans may be refinanced, but may not extend beyond 30 years from the date of the original note.

POST ASSISTANCE REQUIREMENTS:

Reports:   None.

Audits:   The Department of Housing and Urban Development reserves the right to audit the accounts of lenders in order to determine their compliance and conformance with HUD regulations and standards.

Records:   Lenders are required to service and maintain records in accordance with acceptable lending practices of prudent lending institutions and the HUD regulations.

FINANCIAL INFORMATION:

Account Identification:   86-4077-0-3-371.

Obligations:   (Loans insured) FY 01 $120,457,641; FY 02 est $216,300,000; and FY 03 est $117,750,000.

Range and Average of Financial Assistance:  
No Data Available.

In fiscal year 2001, HUD insured 10,357 loans for a total of $115,864,071 and expects about the same in fiscal year 2002.

REGULATIONS, GUIDELINES, AND LITERATURE:

"Fixing Up Your Home," HUD-52-H(7), no charge.

INFORMATION CONTACTS:

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 answers@hud.gov or visit the FHA Resource Center site at http://portal.hud.gov/hudportal/HUD?src=/FHAFAQ.

Headquarters Office:   Wanda L. Sampedro, 451 7th Street, SW, Washington, District of Columbia 20410 Email: answers@hud.gov Phone: (800) 225-5342.

Web Site Address:  
https://portal.hud.gov/hudportal/HUD

EXAMPLES OF FUNDED PROJECTS:

Not applicable.

CRITERIA FOR SELECTING PROPOSALS:

Not applicable.