The Federal Housing Administration (FHA) offers various mortgage insurance programs, under which they insure approved lenders against losses on mortgage loans. FHA-insured mortgages may be used to purchase homes, improve homes, and to refinance existing mortgages.

FHA's programs differ from one another primarily in terms of what types of properties and financing are eligible. Except as otherwise stated in this handbook, FHA's single family programs are limited to one to four unit properties that are owner-occupied principal residences only. FHA insures mortgages on properties that consist of

• detached or semi-detached dwellings
• townhouses or row houses, or
• individual units with FHA-approved condominium projects.

FHA will not insure mortgages on

• commercial enterprises
• boarding houses
• hotels and motels
• tourist houses
• private clubs
• bed and breakfast establishments, or
• fraternity and sorority houses.

Reference: For more information on eligibility of primary and secondary residences, see HUD 4155.1 4.B.

All of the FHA's single family programs are authorized by the enabling legislation of Title II of the National Housing Act, and each program is generally referred to by its particular section of the Act (for example, Section 203(b), (the basic program), Section 251 (Adjustable Rate Mortgages (ARMs)), Section 234(c) Condominiums, etc.).

The regulations implementing the individual programs are contained in the Code of Federal Regulations (CFR), Title 24. The CFR codifies the general and permanent rules of the Department of Housing and Urban Development (HUD)and is updated by publishing changes to regulations in the Federal Register.

Reference: For information on specific mortgage insurance programs, see HUD 4155.2 1.C.

In addition to the particular section of the National Housing Act that authorizes each single family mortgage insurance program, various characteristics of each program will reflect the particular insurance fund under which the program is insured.

The table below lists the three mortgage insurance funds and a description of the programs covered by each fund.

Under FHA's DE program, approved lenders may underwrite and close mortgage loans without prior FHA review or approval. This includes all aspects of the mortgage loan application, the property analysis, and borrower underwriting.

Note: This assumes that the lender is a DE lender with unconditional approval. If the lender has only "conditional" FHA approval, and is in the Pre-Closing Review phase, then the lender must submit the loan to FHA for approval prior to closing the loan.

All FHA programs described in this handbook are eligible for DE processing except

• the Section 203(n), Single Family Cooperative program
• the Section 233, Mortgage Insurance for Experimental Housing program, and
• mortgage loans for HUD employees, with the exception of streamline refinances.

References: For more information on

• processing requirements of Mortgage Loan Applications, see HUD 4155.2 3.C
• the Section 203(n) program, see HUD 4155.2 1.C.6
• the Section 233 program, see HUD 4155.2 1.C.10, and
• loans for HUD employees, see HUD 4155.2 3.B.

HUD Handbooks and Mortgagee Letters provide detailed processing instructions and advise the mortgage industry of major changes to FHA programs and procedures. Additionally, the Home Ownership Centers (HOCs)

• issue Circular Letters
• conduct seminars
• lead industry meetings
• distribute other program information, and
• maintain online reference guides.

References:

• For HOC-specific information, see HUD's Web site at www.hud.gov.
• For sample HUD forms, HUD Handbooks, and Mortgagee Letters, see HUD's Web site at www.hud.gov/hudclips/.