HUD Insured Loans
HUD administers several mortgage insurance programs that provide insurance to lenders to encourage them to make loans to developers and builders who construct or rehabilitate multifamily housing projects. Depending on the particular program, loan proceeds may be used to finance the construction of new housing or acquire or rehabilitate existing housing. Under these programs, HUD insures lenders against loss on a mortgage if a borrower defaults during the life of the mortgage loan. If the borrower defaults, the lender can then assign the mortgage to HUD, making HUD responsible for servicing.
The principle HUD multifamily mortgage and loan insurance programs are as follows:
- Section 207 Multifamily Rental Housing
- Section 213 Cooperative Housing
- Section 220 Urban Renewal Projects
- Section 221 Multifamily Rental Housing for Low and Moderate Income Families
- Section 223(f) Purchase or Refinance of Existing Projects
- Section 223(a)7 Refinancing of Existing Projects
- Section 231 Housing for the Elderly and Handicapped
- Section 232 Nursing Home, Assisted Living Facilities, and Intermediate Care Facilities
- Section 236 Interest Reduction Program
