Mortgage Loan (Deeds of Trust) Programs
This is a complete list of FHA Mortgage Insurance Programs available
for the consumer. Read through all of the programs and if you
feel you need further explanation please contact the FHA listed
agency for complete information or call the HUD Home Ownership
Center at 1-800-440-8647
FHA Mortgage Insurance Programs Single Family Mortgage Insurance
HUD developed this program to provide insurance for a person(s)
to help purchase or re-finance a principal residence. Properties
that contain between one to four units are eligible and up to
97% of the cost of the purchase is eligible for financing. The
borrower is also able to finance closing costs and the up front
mortgage insurance premium into the mortgage. The borrower is
still responsible for paying an annual premium. For more information
on the steps required for this program visit the HUD
FHA web page or call a HUD-approved lending institution.
Insured Loans for Rehabs
HUD insures loans to rehabilitate and make improvements on one-
to four-unit homes that have been completed for at least a year.
You may be eligible if you are an owner. There is no up-front
mortgage insurance premium. Loans range from $5,000 to a maximum
of $25,000. The loan may be used with a FHA loan to purchase
the property. The program requires a five (5) percent down payment
for an owner occupant and a fifteen (15) percent down payment
for an investor. For more information on the steps required
for this program visit the HUD
Rehab web page or call a HUD-approved lending institution.
Rental Housing Insurance
This insurance program provides assistance to finance construction
or rehabilitation of a broad range of rental housing. The insurance
is for properties with five (5) or more units. This programs
is still available but is no longer used for new construction
or substantial rehabilitation. It is the primarily insurance
used for the HUD re-financing program. New construction and
rehabilitation projects are currently insured under the Mortgage
Insurance for Low and Moderate Income Buyers (see section below).
For more information on the steps required for this loan visit
the HUD
Rental Insurance web page or call a HUD-approved lending
institution.
Mortgage Insurance for Rental Housing in Urban Areas
This insurance program is designed to assist developers
of rental housing in Urban Areas that have been target for revitalization.
The loans can be used for all types of rental units, including
single family homes. The program covers new construction and
revitalization in older neighborhoods. For more information
on the steps required for this loan visit the HUD
Mortgage Insurance web page or call a HUD-approved lending
institution.
Mortgage Insurance for Rental and Cooperative Housing
HUD provides this program to assist private industry in
the construction and rehabilitation or rental and cooperative
housing for low- to moderate-income families. The program insures
construction or substantial rehabilitation of projects with
five or more units of multifamily rental or cooperative housing.
Private developers can receive a maximum mortgage of ninety
(90) percent of the costs. For more information on the steps
required for this loan visit the HUD
Rental and Cooperative Housing web page or call a HUD-approved
lending institution.
Mortgage Insurance for Purchase or Refinancing of Existing
Multi family Rental Housing and Small Projects
This program is similar to the Mortgage Insurance for Rental
and Cooperative Housing but is for smaller rehabilitation or
for the re-financing of an existing mortgage. The program insures
projects with five or more units of multifamily rental or cooperative
housing. Private developers can receive a maximum mortgage of
eighty-five (85) percent of the costs. The mortgages are for
a term of ten (10) to thirty-five (35) years or seventy-five
(75) percent of the estimate life of the physical improvements.
For more information on the steps required for this loan visit
the HUD
Purchasing and Re-financing web page or call a HUD-approved
lending institution.
Supplemental Loans for Multifamily Projects
HUD insures loans to pay for the improvements or additions
to apartment projects. The loans under this program maybe used
to either make additions and/or improvements to the property
or to make energy conservation improvements. The loan amount
may not exceed ninety (90) percent of the estimated value of
the improvements, additions or equipment. For more information
on the steps required for this loan visit the HUD
Supplemental Loans web page or call a HUD-approved lending
institution.
Growing Equity Mortgage Insurance
HUD Growing Equity Mortgage Insurance enables a household
with a limited income that is expected to rise to buy a home
sooner by making mortgage payments that start small and increase
gradually over time. The increased payments are applied to reduce
the principal owed on the mortgage and thus shorten the mortgage
term. Anyone who intends to use the mortgaged property as their
primary residence and who expects to see their income rise appreciably
in the future is eligible to apply this mortgage insurance.
For more information on the steps required for this program
visit the HUD
Growing Equity web page or call a HUD-approved lending institution.
HUD-Insured Loans for Special Credit Risks
In some cases, HUD insures loans for people who have had
credit trouble and do not meet the standard credit requirements
to buy low cost homes. Down payments can be as low as 3 percent,
and closing costs can be wrapped into the mortgage. To get a
HUD-insured loan for special credit risks, you need to apply
to a HUD-approved bank, mortgage company or savings and loan
association. There are no limits to the amount of funds available
for this type of FHA loan. For more information on the steps
required for this program visit the HUD
FHA web page or call a HUD-approved lending institution.
Home Equity Conversion Mortgage Program
The Home Equity Conversion Mortgage Program (HECM) can enable
an older home owning family to stay in their home while using
some of its built up equity. The program allows such a household
to get an insured reverse mortgage-a mortgage that converts
equity into income. Because older persons can be vulnerable
to fraudulent practices, the program requires that persons receive
free reverse mortgage housing counseling from a HUD-approved
reverse mortgage counseling agency before applying for a reverse
mortgage. FHA insures HECM loans to protect lenders against
loss if amounts withdrawn exceed equity when the property is
sold. For more information on the steps required for this program
visit the HUD
Reverse Mortgages web page or call HUD-approved lending
institution.
Property Improvement Loan Insurance
HUD insures lenders against the losses on home improvement
loans through this program. The program is designed for light
to moderate of properties, as well as the construction of non-residential
buildings on the property. The program only insures loans and
does not apply to interest rates. The maximum insured loan amount
for single family or non-residential structures is $25,000.
The maximum insured loan amount for multi family properties
in the program is $12,000 per family and $60,000 per structure.
For more information on the steps required for this program
visit the HUD
Property Improvements web page or call a HUD-approved lending
institution.
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