Mortgage Insurance for Members of the Armed Services (Section 222)
The US Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) administers mortgage insurance programs that help low-and moderate income families become homeowners by lowering some of the initial costs of their mortgage loans. 
The basic FHA mortgage insurance program is Mortgage Insurance for One-to-Four-Family Homes (Section 203(b)).  FHA administers a number of programs, based on Section 203 (b).  On these programs, Section 222 allows the Department of Transportation (DOT) and the Department of Commerce (DOC) to pay the FHA mortgage insurance premium on behalf of service members on active duty under their jurisdictions.  The mortgages may finance single-family dwellings and condominiums insured under standard HUD home mortgage insurance programs.
The Mortgage loans may be used by members of the armed services who have been on active duty for two or more years to finance the purchase of an existing house or to build a new house.  They may not be used to refinance a home they already own.  FHA insurance on existing mortgages, insured under other HUD programs, may be transferred to Section 222 upon assumption by an eligible member of the service.  The mortgage may cover a one-family dwelling located any place in the United States, Puerto Rico, Guam, the Trust Territory of the Pacific Islands, or the Virgin Islands. 
Mostly, Section 222 loans are similar to basic FHA-insured, single-family mortgage loans.  In Section 222 loans, the down payment requirements is 3 percent or less,  similar to FHA insurance that allows a homebuyer to finance about 97 percent of the home’s cost.  The closing cost can be financed, reducing the upfront cost.  This program is authorized by the National Housing Act (12 U.S.C. 1715m).  It is administered by HUD’s Office of Housing-Federal Housing Administration.

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