u.s. department of housing and urban development fha m insurance i fha … · 2019-03-15 · •...

ortgage ssues U.S. Department of Housing and Urban Development

FHA M Insurance I FHA Mortgage Insurance Issues Moderators

Douglass Lynott, HUD [email protected]

Lisa Ellis, HUD [email protected]

John Laswick, HUD [email protected]

David Noguera, HUD [email protected]

Richard Pine, Enterprise Community Partners [email protected]

Community Planning and Development

mailto:[email protected]




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P f P Purpose of Presentatiion •• To explore how FHA Insurance Programs can be To explore how FHA Insurance Programs can be

used to support the successful implementationof the NSP

• Discuss issues surrounding use of FHAInsurance Programs with the NSP

U.S. Department of Housing and Urban Development • Community Planning and Development

• FHA Mortgage Insurance Programs can be usedFHA Mortgage Insurance Programs can be used with NSP for:

• Acquisition • Rehabilitation • Resale


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A i iAcquisitii on NonNon-Profit Organizations can use FHA financing toProfit Organizations can use FHA financing to

purchase homes for use with NSP

• Reduces the required down payment • Increases leveraging of available fundsIncreases leveraging of available funds


Non-Profit Approval TTo use FHA fi FHA financiing ffor acquiisitiition, non-profitfit

organizations must be approved by HUD to pparticippate in the HUD Homes Proggram

• Application details »Mortgage Letter 00-08»Mortgage Letter 00 08

»Mortgage Letter 02-01


RRehhabilitatition – 203(k)bilit 203(k)

203(k) Program combines acquisition and • 203(k) Program combines acquisition and rehabilitation funds in one mortgage

•• Can be used for either the acquisition of a Can be used for either the acquisition of a property by a non-profit organization or theresale of a property to a homebuyer


R lResale Benefits to homebuyer/programBenefits to homebuyer/program

• Lower down payment All t f l i t b NSP • Allows payment of closing costs by NSP grantees

•• Allows combination with other approvedAllows combination with other approved homebuyer assistance/subsidy programs


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LLower DDown PPayment

• FHA requires minimum 3 5% down payment FHA requires minimum 3.5% down payment • Up to ½ (50%) of down payment can be

subsidized with NSP fundssubsidized with NSP funds • Down payment assistance must come from a

public entityyp • Seller can not directly provide down payment

assistance to subsidize the required FHAminimum down payment


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P f Cl CPayment of Closiing Costs •• NSP grantees can pay reasonable closing costs NSP grantees can pay reasonable closing costs

without limitation or up to the maximum 6% ofsales prices when using FHA financing


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C bi i A i PCombining Assistance Programs

•• When using NSP or other government funds When using NSP or other government funds FHA allows more than two liens against the property


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C d LHiHighher Combibined LTV TV R Ratiio •• If a government entity is engaged in If a government entity is engaged in

development or revitalization efforts, the combined loan-to-value ratio for the 203(k) P d 110 % Program may exceed 110 %


FHA I Li tiFHA Income Limititation

• NSP programs can serve clients with Area Median Incomes (AMI) exceeding 115% AMIMedian Incomes (AMI) exceeding 115% AMI after securing permission from the jurisdictionalhomeownership centers -as long as the AMI does not exceed 120%does not exceed 120%

• FHA Homeownership Centers & the FHA Resource CenterResource Center http://www.hud.gov/offices/hsg/sfh/hoc/hsghocs.cfm


http://www.hud.gov/offices/hsg/sfh/hoc/hsghocs.cfm

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L t PLottery Program • Exclusively for non Exclusively for non-profitsprofits, units of local• units of local

government and Good Neighbors • Properties held for 5 (calendar) days forProperties held for 5 (calendar) days for

localities to indicate their interest • After 5 dayy ps, proppertyy is awarded to a random

winner (Good Neighbors have priority) • Buyer pays list price less 10% or 30%

U.S. Department of Housing and Urban Development • Community Planning and Development 13

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C i i S l PCompetitive Sales Program • Exclusive look for non Exclusive look for non-profitsprofits, units of local• units of local

government and owner-occupants for first 10 days

• Localities must enter a bid before midnight onthe 10th day

• If awarded the property, the locality pays their offer price less 10% or 30%

• Aft th fi t 10 d th t i t thAfter the first 10 days, the property is open to the general public


B lk S Bulk Salles PProgram • Program is exclusive to NSP recipientsProgram is exclusive to NSP recipients • Must bid on a minimum of 10 properties, no

minimum ppurchase amount


B lk S Bulk Salles PProgram • Discounts will be applied as follows:Discounts will be applied as follows:

– Appraised value greater than $100,000 = 10% discount

– Appraised value less than $100,000 = 50% discount

– Appraised value less than $20,000 and considered a demolition = $100

• Properties remain in the competitive sales program during this period


$1 H P$1 Home Program •• Available to city governments after property has Available to city governments after property has

been listed for 6 months


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NCST I i HUD P iNCST Interaction on HUD Properties Buyyer Setupp • All buyers must be approved by HUD and be

provided with a NAID number before they canh HUD i d h di purchase HUD properties under the discount

programs – the Trust assists with expediting this process as necessaryprocess as necessary


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NCST I i HUD P iNCST Interaction on HUD Properties

Weekly Property ListsWeekly Property Lists • Trust provides lists of lottery and exclusive

competitive sales to buyers based on prescribedcompetitive sales to buyers based on prescribed HUD contractor reporting timelines

• All bids must come througgh the buyyers directlyy as the Trust will not have a NAID number


rces NSP Help/ResoNSP Help/Resources • HUD NSP Help (http://www.hud.gov/nspta OR http://hudnsphelp.info)

– Find a Resource

– Frequently Asked Questions and Ask a Question

– Request Assistance

– Join list serve!

Learning Center (http://hudnsphelp.info/index.cfm?do=viewLearningCenter)

FHA Homeownership Centers & the FHA Resource Center http://www.hud.gov/offices/hsg/sfh/hoc/hsghocs.cfm


http://www.hud.gov/offices/hsg/sfh/hoc/hsghocs.cfm

http://hudnsphelp.info/index.cfm?do=viewLearningCenter

http://hudnsphelp.info

http://www.hud.gov/nspta

• Questions?


e a d esa e

Upcoming WebinarsUpcoming Webinars • Proggram Income,, Activityy Deliver yy and General Administration

– July 1, 2pm • DRGR Show Your Progress

J l 6 2– July 6, 2pm • Continued Affordability and Addressing Technical Issues with

Recapture and Resaleecaptu – July 8, 2pm

• Fair Housing & Equal Opportunity, Section 3 and Section 504 July 13 2pm– July 13, 2pm


Gi F db kGive us your Feedback

Answer a few short questions Answer a few short questions

htthttp:// //www.surveymonkey.com//s/DVGZMQBk /DVGZMQB


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u.s. department of housing and urban development fha m insurance i fha … · 2019-03-15 · •...

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