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14.142 Property Improvement Loan Insurance for Improving All Existing Structures and Building of New Nonresidential Structures
HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
National Housing Act, Title I, Section 2, as amended, 12 U.S.C. 1703.
To facilitate the financing of improvements to homes and other existing structures and the building of new nonresidential structures.
TYPES OF ASSISTANCE:
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.
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.
Pre-application Coordination: None. This program is excluded from coverage under E.O. 12372.
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.
POST ASSISTANCE REQUIREMENTS:
Account Identification: 86-4077-0-3-371.
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.
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 firstname.lastname@example.org or visit the FHA Resource Center site at http://portal.hud.gov/hudportal/HUD?src=/FHAFAQ.
EXAMPLES OF FUNDED PROJECTS:
CRITERIA FOR SELECTING PROPOSALS: