The Section 220(h) program insures lenders against losses on mortgage loans used for alterations, repairs, or improvements to existing one- to eleven-family dwellings in a redevelopment area.

Note: Cost certifications are required for five to eleven family dwellings.

References: For more information on Section 220(h) loans and Section 220 (d)(3)(A) urban renewal loans, see

• HUD 4155.2 1.C.7, and
• HUD 4245.1, Section 220(d)(3)(A) and Section 220(h) Rehabilitation and Neighborhood Conservation Housing Insurance Program.

The property involved in a Section 220(h) loan must have been completed not less than 10 years before the date of application, unless the loan will be used primarily for

• major structural improvements
• correcting defects not apparent at completion, or
• correcting defects caused by fire, flood, or other casualty.

The maximum insurable mortgage amount on a Section 220(h) mortgage loan cannot exceed the difference between any existing debt on the property and the Section 220(d)(3)(A) statutory loan limit for that size structure. Within this limit, the maximum insurable mortgage is the lesser of

• FHA's estimate of the cost of improvements
• $40,000, or
• $12,000 per family unit ($17,400 in high-cost areas).

Reference: For information on the Section 220(d)(3)(A) statutory loan limits, see HUD 4155.2 1.C.7.d.

There is no minimum borrower investment required on a Section 220(h) loan.

The mortgage term on a Section 220(h) loan can be 10, 15, or 20 years.

MIP payments are made monthly on a Section 220(h) loan.

Refinancing is not available under the Section 220(h) program.