FHA Risk-Sharing Program - HUD Section 542(b) Mortgages
HUD provides reinsurance on commercial housing properties whose loans are originated, serviced, and underwritten by Qualifying Participating Entities. Section 542(b) encourages the development for affordable housing projects. HUD's mortgage credit enhancements are utilized to enhance the underwriting and production strengths of Fannie Mae Loans, Freddie Mac Loans, and other qualified Federal, State, and local public financial and housing institutions.
Section 542(b) Purpose
This program helps encourage the production of affordable housing projects. The program provides insurance and reinsurance for commercial housing projects whose mortgages are originated, underwritten, serviced, and disposed of by a QPE and/or its approved lenders.
The QPE and HUD enter into RiskSharing agreements to implement the program. A QPE or its lender, in turn, makes loans to investors, builders, developers, public entities, and private nonprofit corporations or associations.
Eligible borrowers include public entities, investors, developers, builders, and private non-profit corporations or associations may apply to a qualified QPE and/or its lender.
FHA Apartment Loans - HUD Multifamily Mortgages
- Rental Housing - Section 207
- Manufactured Housing - Section 207
- Existing Multifamily Rental Housing - Sections 207/223(F)
- Cooperative Housing - Section 213
- Rental Housing for Urban Renewal and Concentrated Development Areas - Section 220
- Rental & Cooperative Housing - 221(d)(4)
- Senior Housing - Section 231
- Supplemental Multifamily Loans - Section 241
- Risk-Sharing Program - Qualified Participating Entities (QPE) - Section 542(b)
- Housing Finance Agency Risk-Sharing - Section 542(c)