Section 221 (d)(2) Single Family Mortgage Insurance for low to moderate income buyers

What is the purpose of this program?

Provides mortgage insurance for a low or moderate income person, or one displaced by disaster or urban renewal, to purchase or refinance 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?

• Borrower must 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.
• A displaced borrower can purchase a home with only a $200 cash investment.
• Eligible properties are one-to-four unit structures.
• Maximum mortgage amount for a single family unit is $36,000. Lesser limits may be applicable in other areas.