Single Family Housing Programs
The office of Single Family Housing was created to expand and maintain affordable homeownership opportunities for those that are not served or underserved by the private market and to provide a consistent, stabilizing force in the home financing market. To do so, the Office of Single Family Housing utilizes Federal Housing Administration (FHA) loans and mortgage insurance programs, for which it is responsible for the overall management and administration of. Varying functions for Single Family Housing are carried out through a Headquarters Office and four Homeownership Centers (HOC) located in Atlanta, Denver, Philadelphia and Santa Ana.
For a listing of local HOCs, visit http://www.hud.gov/offices/hsg/sfh/hoc/hsghocs.cfm
FHA Housing’s Nonprofit Programs
Mortgage Insurance: Section 203(b)
Disaster Victims: Section 203(h) Loan Program
Reverse Mortgage Program for Seniors: Section 255
Funds for Fixer-Uppers: Streamlined 203(K)
Good Neighbor Next Door Programs
Summary of
HUD Funding Sources & Uses
Cross-Cutting Federal Regulations
FHA Housing’s Nonprofit Programs
Summary
FHA offers community & faith-based non-profit organizations the opportunity to purchase HUD Homes, at discounts up to 30 percent, under the Direct Sales Program. With this discount, local non-profit organizations invest in their communities through property rehabilitation & resell to first-time homebuyers and low-moderate-income families. FHA also offers non-profit agencies favorable FHA insured mortgage financing terms & opportunities for downpayment assistance programs.
Contact Information
For information about the program, contact the Santa Ana Homeownership center at 1-800-CALL FHA (1-800-225-5342). For general questions about HUD and its programs, please contact William Jolley, Boise Field Office Director at (208) 334-1990 or visit the program website at http://www.hud.gov/offices/hsg/sfh/np/np_home.cfm.
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Mortgage Insurance: Section 203(b)
Summary
Section 203(b) is the centerpiece of FHA's single-family mortgage insurance programs. Through this program, HUD's Federal Housing Administration (FHA) insures mortgages made by qualified lenders to people purchasing or refinancing a home of their own.
FHA's mortgage insurance programs help low- and moderate-income families become homeowners by lowering some of the costs of their mortgage loans. FHA mortgage insurance also encourages lenders to make mortgages to otherwise creditworthy borrowers and projects that might not be able to meet conventional underwriting requirements, by protecting the lender against default on mortgages for properties that meet certain minimum requirements--including manufactured homes, single-family and multifamily properties, and some health-related facilities. The borrower is eligible for approximately 97% financing and must meet standard FHA credit qualifications. The borrower will also be responsible for paying an annual premium.
Type of Assistance
FHA mortgage insurance for HUD-approved lenders.
Eligible Activities
The program insures lenders against loss on mortgage defaults. Insured mortgages may be used to finance the construction or rehabilitation of manufactured home parks. Home parks must consist of 5 or more spaces. Contractors for new construction and substantial rehabilitation projects must comply with prevailing wage requirements under the Davis-Bacon Act.
Eligible Applicants
Eligible mortgagors include investors, builders, developers and others who meet
HUD requirements for mortgagors. Families, individuals, or elderly persons owning manufactured homes or desiring to lease spaces in a manufactured park are also eligible.
Application
The sponsor has a pre-application conference with the local HUD Multifamily Hub or Program Center to determine the preliminary feasibility of the project. The sponsor must then submit a site appraisal and market analysis (SAMA) (for new construction projects) or a feasibility application (for substantial rehabilitation projects). Following HUD's issuance of a SAMA or feasibility letter, the sponsor submits a firm commitment application through a HUD-approved lender for processing. Considerations include market need, zoning, capabilities of the borrower, and availability of community resources. If the project meets program requirements, the local Multifamily Hub or Program Center issues a commitment to the lender for mortgage insurance.
Contact Information
For general questions about HUD and its programs, please contact William Jolley, Boise Field Office Director at (208) 334-1990 or visit the program website at http://www.hud.gov/offices/hsg/sfh/ins/203b--df.cfm.
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Disaster Victims: Section 203(h) Loan Program
Summary
The Section 203(h) program allows the Federal Housing Administration (FHA) to insure mortgages made by qualified lenders to victims of a major disaster who have lost their homes and are in the process of rebuilding or buying another home.
Type of Assistance
This program provides mortgage insurance to protect lenders against the risk of default on mortgages to qualified disaster victims. Like the basic FHA mortgage insurance program it resembles, Section 203(h) offers features such as no downpayment and limited fees that make homeownership easier.
Eligible Activities
Insured mortgages may be used to finance the purchase or reconstruction of a one-family home that will be the principal residence of the homeowner.
Eligible Applicants
FHA-approved lending institutions, such as banks, mortgage companies, and savings and loan associations, are eligible for Section 203(h) insurance. Anyone whose home has been destroyed or severely damaged in a Presidentially declared disaster area is eligible to apply for mortgage insurance under this program.
Application
The borrower’s application for mortgage insurance must be submitted to the lender within one year of the President’s declaration of the disaster. Applications are made through an FHA-approved lending institution, which make their requests through a provision known as "Direct Endorsement," which authorizes them to consider applications without submitting paperwork to HUD. Mortgage insurance processing and administration for this and other FHA single-family mortgage insurance products are handled through HUD's Homeownership Centers.
Contact Information
For general questions about HUD and its programs, please contact William Jolley, Boise Field Office Director at (208) 334-1990 or visit the program website at http://www.hud.gov/offices/hsg/sfh/ins/203h-dft.cfm.
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Reverse Mortgage Program for Seniors: Section 255
Summary
The Reverse Mortgage Program issues federally-insured private loans (commonly known as Home Equity Conversion Mortgages or HECM) to elderly homeowners so that they can convert a portion of the equity in their home into cash. Unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. The amount borrowed depends on age, the current interest rate, and the appraised valued of the home or FHA’s mortgage limits for
the area, whichever is less.
Type of Assistance
FHA mortgage insurance for HUD-approved lenders.
Eligible Applicants
To be eligible the borrower must be a homeowner, 62 years of age or older; who owns the home outright (or have a low mortgage balance); and must live in the home. The home must be a single family dwelling or a two-to-four unit property that you own and occupy. Townhouses, detached homes, units in condominiums and some manufactured homes are eligible. Condominiums must be FHA-approved. It is possible for individual condominiums units to qualify under the Spot Loan program.
Application
Any HUD approved HECM lender may originate a Reverse Mortgage loan.
Contact Information
For a list of HUD approved HECM counselors call (800) 569-4287 or visit: http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?filtersvc=hec&filtermultistate=yes.
For a list of HUD approved HECM lenders, visit http://www.hud.gov/ll/code/llplcrit.html.
For general questions about HUD and its programs, please contact William Jolley, Boise Field Office Director at (208) 334-1990 or visit the program website at http://www.hud.gov/offices/hsg/sfh/hecm/hecmabou.cfm#about.
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Funds for Fixer-Uppers: Streamlined 203(K)
Summary
FHA’s streamlined program provides mortgage insurance for a person to purchase or refinance a home needing minor remodeling or repairs, lead-based paint stabilization or work to improve energy efficiency.
Type of Assistance
The Streamlined (K) allows a home-owner to obtain one loan (from FHA approved lender) to repair and purchase (or refinance) a home. There is no minimum repair cost threshold and the maximum repair amount is $35,000.
Eligible Activities
This program can be used to accomplish rehabilitation and/or improvement of an existing one-to-four unit dwelling in one of three ways: to purchase a dwelling and the land on which the dwelling is located and rehabilitate it; to purchase a dwelling on another site, move it onto a new foundation on the mortgaged property and rehabilitate it; or to refinance existing indebtedness and rehabilitate such a dwelling. Luxury items and improvements that do not become a permanent part of the real property are not eligible as a cost rehabilitation.
Eligible Applicants
To be eligible, the property must be a one- to four-family dwelling that has been completed for at least one year. The number of units on the site must be acceptable according to the provisions of local zoning requirements. All newly constructed units must be attached to the existing dwelling. Cooperative units are not eligible.
Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided some of the existing foundation system remains in place.
In addition to typical home rehabilitation projects, this program can be used to convert a one-family dwelling to a two-, three-, or four-family dwelling. An existing multi-unit dwelling could be decreased to a one- to four-family unit. An existing house (or modular unit) on another site can be moved onto the mortgaged property; however, release of loan proceeds for the existing structure on the non-mortgaged property is not allowed until the new foundation has been properly inspected and the dwelling has been properly placed and secured to the new foundation.
Application
Any FHA approved lender may originate a Streamlined 203(k) mortgage.
Contact Information
For a list of FHA approved lenders, visit http://www.hud.gov/ll/code/llslcrit.html.
For general questions about HUD and its programs, please contact William Jolley, Boise Field Office Director at (208) 334-1990 or visit the program website at http://www.hud.gov/offices/hsg/sfh/203k/203kslrp.cfm.
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Good Neighbor Next Door Programs
Summary
This program is designed to encourage teachers, police officers, firefighters, and emergency medical technicians (EMTs) to buy HUD-owned homes in low and moderate-income neighborhoods and revitalization areas.
Type of Assistance
HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence.
Eligible Activities
This program can be used to accomplish rehabilitation and/or improvement of an existing one-to-four unit dwelling in one of three ways: to purchase a dwelling and the land on which the dwelling is located and rehabilitate it; to purchase a dwelling on another site, move it onto a new foundation on the mortgaged property and rehabilitate it; or to refinance existing indebtedness and rehabilitate such a dwelling. Luxury items and improvements that do not become a permanent part of the real property are not eligible as a cost rehabilitation.
Eligible Applicants
Potential homeowners must be “employed full-time” in the area where the home is located. First-time homebuyers is not a requirement; however, participants cannot own any other home at the time of closing and must agree to live in the home for three years.
Application
Area homes are listed and sold exclusively over the Internet and winning bids are randomly selected by the computer.
Contact Information
For a list of homes for sale, visit http://www.homesales.gov.
For general questions about HUD and its programs, please contact William Jolley, Boise Field Office Director at (208) 334-1990 or visit the program website at http://www.hud.gov/offices/hsg/sfh/reo/goodn/gnndabot.cfm.
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Summary of
HUD Funding Sources & Uses
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Cross-Cutting Federal Regulations
The following regulations may also apply to federally funded programs:
Accessibility
http://www.hud.gov/offices/fheo/disabilities/fhefhag.cfm
Economic Opportunities for Low and Very Low Income Persons (Section 3)
http://www.hud.gov/offices/fheo/section3/section3.cfm
Environmental Review
http://www.hud.gov/offices/cpd/environment/review/
Equal Opportunity and Fair Housing
http://www.hud.gov/offices/fheo/index.cfm
Labor Regulations
http://www.hud.gov/offices/cpd/affordablehousing/training/web/
crosscutting/employment/laborregs.cfm
Lead-Based Paint
http://www.hud.gov/offices/lead/enforcement/disclosure.cfm
Property Standards
http://www.hud.gov/offices/cpd/affordablehousing/lawsandregs/
fedreq/p/index.cfm#property
Uniform Relocation Act
http://www.hud.gov/offices/cpd/affordablehousing/training/web/
relocation/overview.cfm
Uniform Administrative Requirements
http://www.hud.gov/offices/cpd/affordablehousing/training/web/
crosscutting/administrative/uarintro.cfm
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