To provide mortgage insurance for an adjustable rate mortgage which offers lenders more assurance of long term profitability than a fixed rate mortgage, while offering consumer protection features.
All persons intending to occupy the property are eligible to apply.
Documentation regarding the characteristics of the property and the qualifications of the mortgagor are assembled by the mortgagee and submitted with the application. This program is excluded from coverage under OMB Circular No. A-87 . This program is excluded from coverage under E.O. 12372. Application is submitted for review and approval or disapproval to the local HUD Field Office through a HUD-approved lending institution. See Application Procedure.