How does the H4H program differ from FHASecure?
• Any type of first mortgage can qualify, as long as it was originated on or before January 1, 2008. • All existing lien holders must waive prepayment penalties and late charges, as well as extinguish all liens against the property. • Existing first lien holders are required to accept the proceeds of the H4H mortgage as payment in full. • Borrowers will be required to share both the initial equity created with the H4H loan, and future appreciation. • The maximum loan amount is $550,440, nationwide. How does the appreciation sharing work? To encourage subordinate lien holders to participate in the negotiation process and release their liens, FHA has the authority to share with them the government’s portion of any future appreciation in the property’s value. At settlement, subordinate lien holders will receive a certificate that evidences their interest as an obligation backed by HUD, with payment conditional on the value of HUD’s appreciation share. Please see mortgagee letters 08-29 an
