Section 237 Single Family Mortgage Insurance for Credit Risks

What is the purpose of this program?

Provides mortgage insurance for a low or moderate income person unable to meet standard credit requirements to purchase a low cost principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD.

What are the eligibility requirements?

• The use of this program is at the discretion of HUD.
• Borrower does not need to meet standard FHA credit qualifications.
• Borrower is eligible for approximately 97% financing. Borrower is able to finance closing costs and will pay a monthly mortgage insurance premium.
• Eligible properties are one unit structures.
• Maximum mortgage amount is $21,000. Lesser limits may be applicable in other areas.