Housing Assistance: An Inventory of Fiscal Year 2010 Programs, Tax Expenditures, and Other Activities

U.S. Government Accountability Office

Mortgage Insurance for Disaster Victims (Section 203(h))

Administering Agency/Entity Department of Housing and Urban Development
Short Description Provides mortgage insurance to protect lenders against the risk of default on loans to qualified disaster victims. Insured loans may be used to finance the purchase or reconstruction of a one-family home that will be the principal residence of the homeowner. No down payment is required and the borrower is eligible for 100 percent financing. Federal Housing Administration (FHA) rules impose limits on some of the fees that lenders may charge in making a mortgage. FHA has the authority to establish and collect a single up-front premium and annual premiums. Congress has set limits on the size of the loans that may be insured by FHA, which can vary by county. Mortgage insurance is available through FHA-approved lenders and to anyone intending to use the mortgaged property as their primary residence.
Primary Purpose Assistance for buying, selling, or financing a home
Type of Housing Supported Homeownership
Type of Assistance Insured loan
Fiscal Year 2010 Obligations Loans are insured under the Mutual Mortgage Insurance Fund. The expected credit subsidy costs for all loan commitments made in fiscal year 2010 under this Fund were -$2,546,000,000. These estimates are revised in subsequent years and the ultimate cost will not be known until the loans have matured, which in some cases may be 30 years.

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