• Section 203(k) Rehabilitation Mortgage Insurance (“The Dream Mortgage”)
    Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made. When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and relatively short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan. Repairs and improvements are completed within 3 to 6 months after loan closing. No geographic restrictions. Mortgage may be borrowed on up to 110% of projected appraised value.

  • Manufactured Homes (Title I)
    Federal insurance of loans to finance the purchase of manufactured homes.

  • Mortgage Insurance for Disaster Victims
    Provide mortgage insurance for disaster victims.

  • Property Improvement Loan Insurance (Title I)
    FHA insures loans to finance improvement alternatives or repairs of 1 to 4 families homes. Equity not required. Approved lenders make second mortgage loans available at current market rates. Maximum loan amount for Single Family homes is $25,000 (higher for multifamily residences). Maximum repayment term is 20 years.

  • Single Family Home Mortgage Insurance Programs (1-4 Family Properties)
    Section 203(b) provides federal mortgage insurance on loans made by private financial institutions and Planned Unit Developments (PUDs). Association documents must be pre-approved before HUD participation. Section 221(d)(2) - Same as Sec. 203(b) except this provides mortgage insurance to increase homeownership opportunities for low and moderate income families, especially those displaced by urban renewal. Maximum insurable loans are less than Sec. 203(b). Section 223(e) - Same as Sec. 203(b) except HUD provides mortgage insurance to build, purchase or rehabilitate housing in older, declining urban areas. Must still be a viable urban area where conditions are such that normal requirements for mortgage insurance cannot be met. The property must be in a reasonably viable neighborhood and an acceptable risk under the mortgage insurance rules. Terms vary Section 203(i) - Same as Sec. 203(b) except HUD insures lenders against loss on mortgage loans in outlying rural areas. Maximum insurable loan is 75% of limit on Sec. 203(b). Adjustable Rate Mortgages (ARMs) - Under this HUD insured mortgage, under Section 251, the interest rate and monthly payment may change during the life of the loan. The initial interest rate, discount points, and the margin are negotiable between the buyer and lender. The one-year Treasury Constant Maturities Index is used to determine interest rate changes. One percentage point is the maximum amount the interest rate may increase or decrease in any one year. Over the life of the loan, the maximum interest rate change is five percentage points from the initial rate of the mortgage. Section 203K “Dream Mortgage”: Purchase/refinance rehabilitation insured loan, see page 14. Home Equity Conversion Mortgage (HECM) (Also called a “Reverse Mortgage”) - Federal mortgage insurance under Section 255 allows borrowers, who are 62 years of age and older to convert the equity in their homes into a monthly stream of income or a line of credit. Under the HECM Program, FHA insures reverse mortgages that allow older homeowners to convert their home equity into spendable. Reverse mortgages provide a valuable financing alternative for older homeowners who wish to remain in their homes but have become “house-rich and cash poor.” When the loan is due and payable, if the loan exceeds the value of the property, the borrower (or their heirs) will owe no more than the value of the property. FHA insurance will cover any balance due the lender.

  • Section 202 - Supportive Housing for the Elderly
    Section 202 provides federal capital advances and project rental assistance under Section 202 of the Housing Act of 1959 (as amended) for housing projects serving elderly households (62 years of age or older). The housing projects shall provide the necessary services for the occupants which may include but not be limited to: health, meal and nutritional services, counseling and referral services as well as transportation where necessary to facilitate access to these services.

  • Section 811 Supportive Housing for Persons with Disabilities
    Section 811 of the National Affordable Housing Act of 1990 replaces the Section 202 Program of Housing for Handicapped People as authorized by Section 202 of the Housing Act of 1959 (as amended by Section 162 of the Housing and Community Development Act of 1987). The program enables persons with disabilities to live with dignity and independence within their communities by expanding the supply of housing that provides supportive services which address the needs of the residents. Capital advances are made to eligible nonprofit sponsors to finance the development of rental housing with supportive services for the disabled. The capital advance is interest free and does not have to be repaid so long as the housing remains available for very low-income persons with disabilities for at least 40 years. Project rental assistance covers the difference between the HUD-approved operating cost per unit and the amount the resident pays and occupancy is open to very low-income persons with disabilities between the ages of 18 and 62.

  • Mortgage Insurance for Existing Multifamily Rental Housing-Section 223(f)
    Provides federal mortgage insurance for the purchase or refinance of existing apartments; to refinance an existing cooperative housing project; or the purchase and conversion of an existing rental project to cooperative housing. These projects may have been financed originally with conventional or FHA-insured mortgages. The program allows long-term mortgages (up to 35 years) that can be purchased by the Government National Mortgage Association (Ginnie Mae). Maximum insurable mortgage is 85%.

  • Mortgage Insurance for Nursing Homes, Intermediate Care & Board and Care Facilities (Sect. 232)
    HUD insures mortgages made by private lending institutions to finance construction or renovation of facilities to accommodate 20 or more patients requiring skilled nursing care and related medical services, or those in need of minimum but continuous care provided by licensed or trained personnel. Board and Care facilities may contain no fewer than five one-bedroom or efficiency units. Nursing home, intermediate care and board and care services may be combined in the same facility covered by an insured mortgage or may be in separate facilities. Major equipment needed to operate the facility may be included in the mortgage. Facilities for day care may be included. A purchase or refinance of residential health care properties (not previously HUD insured) is permitted under section 232 pursuant to 223(f).

  • Condominium Housing (Section 234)
    Provides mortgage insurance to finance the construction or rehabilitation of multifamily housing by sponsors who intend to sell individual units and to finance acquisition costs of individual units in proposed or existing condominiums. Mortgage insurance for the purchase of individual family units in multifamily housing projects is made under Section 234 (c). Sponsors may also obtain FHA-insured mortgages to finance the construction or rehabilitation of housing projects which they intend to sell as individual condo units under Section 234 (d). A condominium is defined as joint ownership of common areas and facilities by the separate owners of single dwelling units in the project.

  • Housing Choice Vouchers
    To aid very low-income families in affording decent, safe and sanitary housing in private accommodations by providing rental assistance.

  • Manufactured Homes (Title I)
    Federal insurance of loans to finance the purchase of manufactured homes.

  • Mobile Home Parks (Section 207M)
    This program insures mortgages used to finance the construction or rehabilitation of manufactured home parks.

  • Mortgage Insurance for Single Room Occupancy (SRO) Projects, Section 221(d)
    The Section 221(d) program provides mortgage insurance for multifamily properties consisting of single-room occupancy (SRO) apartments. These apartments are intended for people--usually a single person--who have a source of income but are priced out of the rental apartment market. This program helps prevent homelessness by encouraging construction of single-room apartment buildings whose construction or rehabilitation is insured by HUD, thus enabling people with very limited incomes to find clean and safe housing. By reducing the risk of default for lenders, this mortgage insurance makes capital more available to developers. Through this program, HUD insures mortgage loans to finance the construction or rehabilitation of housing projects with five or more SRO units. The project must consist primarily of one-room units. Each SRO apartment can have its own kitchen or bathroom facilities, or these facilities may be shared by several apartments. An apartment can be designed to allow for more than one occupant, but the number of people living in a unit cannot exceed the number permitted by occupancy requirements in State and local codes and the Fair Housing Act. The maximum amount of the loan may not exceed 90 percent of the estimated replacement cost. The maximum mortgage term is 40 years or up to three-fourths of the building’s remaining economic life, whichever is less.

  • Small Project Processing (SPP)
    Federal mortgage insurance to finance new construction of rental housing, or to refinance existing apartments. Substantial rehabilitation is allowed. Project size to be from 5 to 20 units. Many aspects of Section 221(d)(3)(4), and Section 223 (f) basic mortgage insurance programs still apply. SPP is to be streamlined processing for smaller projects. Loan amount is limited to a maximum of $1,000,000. Mortgage terms are for a maximum of 30 years for 223 (f); and 35 years for 221 (d)(4), and will be limited to 75% of the remaining economic life of the project. Loan to value is 80% maximum for purchase/refinance and 85% for new construction and substantial rehabilitation. Debt Service coverage is minimum 1.2% at 90% occupancy.

  • Section 203(k) Rehabilitation Mortgage Insurance (“The Dream Mortgage”)
    Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made. When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and relatively short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan. Repairs and improvements are completed within 3 to 6 months after loan closing. No geographic restrictions. Mortgage may be borrowed on up to 110% of projected appraised value.

  • Mortgage Insurance for Disaster Victims
    Provide mortgage insurance for disaster victims.

  • Multifamily Rental Housing Mortgage Insurance Program (rental/cooperative)
    Federal mortgage insurance to finance construction or rehabilitation of a broad cross section of rental housing. Usually 5 or more units is considered multifamily. For existing properties separate fact sheet on Section 223 (f). Section 207-Basic multifamily mortgage insurance program can insure mortgages of a luxury nature. The mortgage is insured to a private lending institution. Section 221 (d) (3) & (4)-same as Sec. 207 except for housing for moderate income families. Principal difference between (d3) and (d4) is that HUD may insure mortgages up to 100% of total project cost under (d3) for nonprofit and cooperative mortgagors, but only up to 90% under (d4), regardless of type of mortgage. Section 231-Same as Sec. 207 except this mortgage insurance is for rental housing for the elderly or handicapped. May insure up to 100% of project cost for nonprofits but only up to 90% for private mortgagors. Section 220-Same as Section 207 except HUD insures loans used to finance mortgages for housing in urban renewal areas in which concentrated revitalization activities have been undertaken by local governments, or to alter, repair or improve housing in those areas. Section 213-Federal mortgage insurance to finance cooperative housing projects. HUD insures mortgages made by private lending institutions on cooperative housing projects to be occupied by members of nonprofit cooperative ownership housing corporations.

  • Property Improvement Loan Insurance (Title I)
    FHA insures loans to finance improvement alternatives or repairs of 1 to 4 families homes. Equity not required. Approved lenders make second mortgage loans available at current market rates. Maximum loan amount for Single Family homes is $25,000 (higher for multifamily residences). Maximum repayment term is 20 years.

  • Single Family Home Mortgage Insurance Programs (1-4 Family Properties)
    Section 203(b) provides federal mortgage insurance on loans made by private financial institutions and Planned Unit Developments (PUDs). Association documents must be pre-approved before HUD participation. Section 221(d)(2) - Same as Sec. 203(b) except this provides mortgage insurance to increase homeownership opportunities for low and moderate income families, especially those displaced by urban renewal. Maximum insurable loans are less than Sec. 203(b). Section 223(e) - Same as Sec. 203(b) except HUD provides mortgage insurance to build, purchase or rehabilitate housing in older, declining urban areas. Must still be a viable urban area where conditions are such that normal requirements for mortgage insurance cannot be met. The property must be in a reasonably viable neighborhood and an acceptable risk under the mortgage insurance rules. Terms vary Section 203(i) - Same as Sec. 203(b) except HUD insures lenders against loss on mortgage loans in outlying rural areas. Maximum insurable loan is 75% of limit on Sec. 203(b). Adjustable Rate Mortgages (ARMs) - Under this HUD insured mortgage, under Section 251, the interest rate and monthly payment may change during the life of the loan. The initial interest rate, discount points, and the margin are negotiable between the buyer and lender. The one-year Treasury Constant Maturities Index is used to determine interest rate changes. One percentage point is the maximum amount the interest rate may increase or decrease in any one year. Over the life of the loan, the maximum interest rate change is five percentage points from the initial rate of the mortgage. Section 203K “Dream Mortgage”: Purchase/refinance rehabilitation insured loan, see page 14. Home Equity Conversion Mortgage (HECM) (Also called a “Reverse Mortgage”) - Federal mortgage insurance under Section 255 allows borrowers, who are 62 years of age and older to convert the equity in their homes into a monthly stream of income or a line of credit. Under the HECM Program, FHA insures reverse mortgages that allow older homeowners to convert their home equity into spendable. Reverse mortgages provide a valuable financing alternative for older homeowners who wish to remain in their homes but have become “house-rich and cash poor.” When the loan is due and payable, if the loan exceeds the value of the property, the borrower (or their heirs) will owe no more than the value of the property. FHA insurance will cover any balance due the lender.

  • HOME Investment Partnership Program (HOME)
    Grants to states, units of local governments to implement local housing to expand the supply of decent and affordable housing for low-and very low-income Americans.

  • Rural Housing Preservation Grants (HPG)
    To assist very low-and low-income rural homeowners in obtaining adequate housing by providing the necessary assistance to repair or rehabilitate their housing. These objectives will be accomplished through the establishment of housing rehabilitation projects run by eligible applicants. This program is intended to make use of and leverage other available housing programs which provide resources to very low and low-income rural residents to bring their homes up to code standards.

  • Rural Housing Site Loans (Section 523 and 524 Site Loans)
    To assist public or private nonprofit organizations interested in providing sites for housing, to acquire and develop land in rural areas to be subdivided as adequate building sites and to be sold on a nonprofit basis to families eligible for low- and very low-income loans; cooperatives, and broadly based nonprofit rural rental housing applicants.

  • Rural Self-Help Technical Assistance
    To provide financial support for the promotion of a program of technical and supervisory assistance that will aid very low and low-income individuals and their families in carrying out mutual self-help housing efforts in rural areas.

  • Rural Rental Housing Loans
    To provide economically designed and constructed rental and cooperative housing and related facilities suited for independent living for rural residents.

  • Guaranteed Rural Rental Housing Loans
    To provide rental units for families up to 115% of the median income

  • Guaranteed Section 502 Moderate Income Housing Loans
    To assist moderate income rural households to obtain primary, single family residences. 100% financing - no PMI, 30-year fixed-rate conventional guaranteed loans targeted to rural areas. Loans may not exceed HUD designated maximum mortgage limit.

  • Rural Self-Help Housing Technical Assistance
    To provide financial support for the promotion of a program of technical and supervisory assistance that will aid very low and low-income individuals and their families in carrying out mutual self-help housing efforts in rural areas.

  • Very Low and Low-Income Housing Repair (Section 504 Rural Housing Loans)
    To give very low-income rural homeowners an opportunity to make essential repairs to their homes to make them safe and to remove health hazards to the family or the community.

  • Housing Fund
    To increase the supply of affordable housing opportunities, rental and ownership, for low and very low income Iowans.

  • Housing Enterprise Zone
    To encourage communities to target resources in ways that attract productive private investment in economically distressed areas within a county or city.

  • Housing Assistance Fund Program (HAF)
    The development and maintenance of decent, safe and affordable housing and the creation of a suitable living environment for low- and moderate-income families.

  • Title Guaranty Division
    To compensate owners of Iowa real estate or lenders making loans secured by Iowa real estate for losses suffered because of defective title to that real estate, through the sale of Title Guaranty Certificates.

  • Rural Community Planning and Development Fund
    Offers financial and technical assistance for a variety of issue areas. Support economic vitality for progressive common’s with financial and technical assistance for planning, training, education, consultation and technical assistance to farther local initiatives.

  • First-Time Homebuyer Low Interest Mortgage Loan Program
    To assist first-time homebuyers by making low interest loans available through participating lenders.

  • Low-income Housing Tax Credit Program
    The Authority issues Low-Income Housing Tax Credits to sponsors of qualified affordable housing projects to encourage investment in affordable housing which in turn increases the availability of rental housing for individuals and families in Iowa.

  • Down Payment/Closing Cost Grant Program
    To provide assistance for down payment, closing costs and necessary repairs to homebuyers at approximately 80% or below the area’s median income.

  • HUD Section 8 Contract Administration
    Oversees selected Section 8 projects in the state of Iowa, ensuring that each property complies with applicable HUD rules and regulations.

  • FirstHome Plus Assistance
    To assist first-time homebuyers with closing costs, required repairs, and down payment in conjunction with the Iowa FirstHome Low Interest Mortgage Loan Program.