Skip to main content

ML 09-26: Eligibility of Projects for Mortgage Insurance where Construction has Started

Mortgagee Letter 2009-26 temporarily authorizes and establishes policy for Section 220, 221(d) and 231, mortgage insurance programs to insure mortgages for multifamily proposals that were unable to complete construction due to a loss of funding.  This temporary authority is limited to new construction proposals and waives the requirement that construction must not have started prior to making an application for a HUD-insured mortgage.  Construction work completed prior to application submission must not have exceeded site preparation necessary to begin building construction and the completion of the foundation.  The waiver authority granted under this ML expires six months from publication.  The Department will evaluate the effectiveness of this waiver authority based upon applications received and may elect to extend the program based upon that evaluation.

SOLUTIONS THAT WORK. TECHNOLOGY TO STAY COMPLIANT.