FEDERAL
AGENCY:
HOUSING,
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AUTHORIZATION:
National
Housing Act, as amended, Section 238(c), Public Law 93-383, 42 U.S.C.
3535(d).
To
help families undertake home ownership in military impacted 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 the purchase
of proposed, under construction, or existing one - to four-family
housing, as well as to refinance indebtedness on existing housing.
Maximum loans for an occupant mortgagor are the same as prescribed
for Section 203(b). Mortgages may be insured under any section of
Title II pursuant to Section 238(c) provided the property is located
in areas designated by the Secretary of Defense as military impacted
areas.
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility:
All families intending to occupy the property are eligible to apply.
The requirements will vary with the Section under which the loan
is insured. Section 203(b) requirements are outlined below.
Beneficiary Eligibility:
Individuals/families.
Credentials/Documentation:
Documentation regarding the characteristics of the property and
the qualifications of the mortgagor are assembled by the mortgagee
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: 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. In addition to the downpayment, the purchaser
must pay for all items of prepaid expense. The mortgage insurance
premium is 1/2 of 1 percent. The origination charge by the mortgagee
varies, but may not exceed one percent of the total mortgage.
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 term must be reported. All approved
mortgagees 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 mortgagee to determine its compliance
and conformance with HUD regulations and standards.
Records:
Mortgagees 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 included in the number of
loans insured under Section 203(b).
REGULATIONS, GUIDELINES, AND
LITERATURE:
"Home Mortgage Insurance,"
no charge; Fact Sheet "HUD-FHA Program for Home Mortgage Insurance,"
no charge; 24 CFR 203.1 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/progdesc/snglindx.cfm
EXAMPLES OF FUNDED PROJECTS:
Not applicable.
CRITERIA FOR SELECTING PROPOSALS:
Not applicable.
